On the back of the decision by a court in the US that Ripple Labs did not violate federal securities law by selling its XRP token on public exchanges, the crypto market surged after a muted week.
According to data available on CoinMarketCap.com, Bitcoin was up 3.62 per cent and was trading at $31,220 on Friday. But much of this surge came after Thursday when the ruling was announced. Till then, it was trading around $30,200.
As of Friday, the total market capitalisation of the crypto market was $1.25 trillion, up nearly 5 per cent in the last 24 hours.
Ripple, was up a steep 66.3 per cent in the last seven days with 64 per cent of this surge coming in the last 24 hours.
"The crypto market has seen tremendous gains this week, on the back of a US court ruling partially in favor of Ripple. The court has stated that the trading of XRP amongst retail investors can't be dubbed as a 'securities' sale. The Securities and Exchange Commission (SEC) continues to hold its stance against the ruling and will likely re-appeal, but overall this sets a strong precedence for the sector," said Parth Chaturvedi, investments lead at CoinSwitch Ventures.
"The recent Ripple decision provided a temporary boost, as a US judge determined that the sale of XRP tokens through exchanges and algorithms did not constitute investment contracts while also ruling that the institutional sale of the tokens violated federal securities laws," said Rajagopal Menon, vice president of crypto exchange WazirX.
"In a remarkable display of strength, XRP has outperformed BTC by surging over 61 per cent within the last 24 hours, reaching its highest point in a year," said Edul Patel, co-founder, and chief executive officer (CEO) of Mudrex.
Another reason for the surge was the lower-than-expected US inflation of three per cent for June.
"The recent CPI announcement revealed that inflation in the United States continues to cool, with the regular CPI reaching 3 per cent year-on-year (YoY), slightly lower than the estimated 3.1 per cent. Moreover, the Core CPI for June stood at 4.8 per cent YoY, below the expected 5 per cent. Historically, falling inflation has been seen as a bullish sign for markets, indicating a potential end to the Federal Reserve's hawkish monetary policy," said the research team of crypto exchange CoinDCX.
It, however, cautioned that the market remains in a consolidation phase.
According to Patel, "the current market sentiment looks bullish".