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In a dramatic turn of events, the XRP token plummeted by more than 6.4% within just half an hour, sending shockwaves through the crypto market. The drop was triggered by a massive token dump of 50 million XRP, with a staggering 30 million of them being sold off in a mere five minutes.
The catalyst behind this massive sell-off was an alarming report published by the Wall Street Journal. The article revealed the Securities and Exchange Commission's claim that filings for spot Bitcoin exchange-traded funds (ETFs) are incomplete and unclear. This single headline alone managed to wipe out a staggering $56 billion from the overall market capitalization, leaving XRP severely impacted.
The Securities and Exchange Commission said a recent wave of applications filed by asset managers to launch spot bitcoin exchange-traded funds are inadequate https://t.co/EmcJIt5Qm2
— The Wall Street Journal (@WSJ) June 30, 2023
However, amid the chaos and panic, there may be a glimmer of hope for the crypto industry. The same article revealed that the SEC is open to considering applications for ETFs once they are finalized.
Bulls remain resilient
Despite the immediate earthquake-like impact on the market, some optimistic crypto enthusiasts remain unfazed by the sell-off. They argue that the SEC's willingness to reconsider applications for ETFs, coupled with the expressed interest of financial powerhouses such as BlackRock and Fidelity in creating crypto-related investment products, indicates a potentially bright future for the industry.
While the short-term effects of the token dump were undoubtedly felt across the market, the prospect of renewed consideration for ETF applications may serve as a catalyst for recovery. As investors navigate these uncertain times, all eyes remain on the SEC's next moves and the potential implications for the crypto market as a whole.