The crypto sector is well-known for its volatility. It goes up and down with regularity and often with ferocity. I believe that forces are conspiring that will lead to a substantial upswing in the near future. The industry has been the beneficiary of a lot of positive news of late. That news has the potential to lead crypto to a new level of acceptance overall, and has led to the rise of cryptos to buy.
That’s particularly important because as time goes on crypto is becoming more accepted by a wider swath of people. The more commonly accepted crypto becomes, the less controversial it becomes and the higher demand should rise. In turn, prices will continue to rise. It’s a virtuous cycle that is happening right before our eyes.
XRP (XRP-USD)
XRP (XRP-USD) has to be the most obvious screaming buy at this moment. Its sale son crypto exchanges were declared to have been in compliance with securities law by a federal court. It’s the judgment that many have expected for a long time and one that promises to send the cross-border remittances coin higher.
Prices for XRP skyrocketed when the news was released going from $0.47 to $0.93 immediately following the judgment that it isn’t a security. They retreated to $0.70 the day after as traders secured their gains. That was largely expected by investors who had followed the case closely. This means it’s one of those cryptos to buy.
The question now becomes whether XRP can extend the rally for a significant period of time or if it is simply a one-and-done reaction to the positive court outcome. Analysts that follow the activity of whales – those with more than $100k in their wallets – suggest that XRP’s rally may just be getting started. Further, XRP has traded above $1 in the past.
Bitcoin (BTC-USD)
Bitcoin (BTC-USD) has traded above $30k for the past several weeks. It is known as a bellwether for the greater cryptocurrency industry. I think it’s about to be the beneficiary of help due to XRP’s win in court.
What I mean is this: The XRP court victory sets a precedent. The SEC is not going to have the regulatory oversight it sought when it decided to take Ripple to court. The power grab simply isn’t going to work. So, first of all, other crypto firms facing similar cases just became much likelier to receive judgments in their favor.
There’s a chance that these smaller cryptos will push Bitcoin higher rather than Bitcoin pulling them higher as it always does.
Further, regulatory pressure on crypto just suffered a major defeat. That should open the floodgates for investors who were concerned about oversight to invest. In short, crypto just got a lot more attractive and Bitcoin is the best-known crypto. Investors are going to move into BTC with near certainty because the sector has just had a massive albatross removed from its neck. All in all, it’s one of those cryptos to buy.
Hedera (HBAR-USD)
Hedera (HBAR-USD) is known for its enterprise-grade network. It is a leader in the enterprise space for blockchain integration and functionality.
I’d be willing to bet that Hedera will see demand rise and increased interest from firms seeking to understand how it can help their operations over the coming weeks. Why? Because of relaxing sentiment around regulatory oversight. I don’t mean to imply that firms are looking to use the blockchain for nefarious reasons. Instead, I mean that Ripple’s victory means crypto will grow as a result of lessening regulatory pressure.
Crypto isn’t dying. It’s only getting stronger and firms will want to better understand Hedera’s offerings now. It’s a very simple yet powerful notion: less regulation leads to more integration for Hedera and the firms it serves.
Another way to look at Hedera’s opportunity is to assume a business scenario that might occur. Imagine that an enterprise has been following the Ripple case and looking to consider blockchain integration if Ripple wins. Who might that firm consider? Hedera since its the best-known enterprise-grade blockchain network.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
