Quick take:
- Bitstamp becomes the first major crypto exchange to act on the news of the SEC suing Ripple
- Trading and deposits of XRP for US customers will be halted on January 8th, 2021
- Other major exchanges might soon follow
- XRP has taken another nosedive to the $0.30 support area and could keep dipping
The crypto exchange of Bitstamp has just announced that it will be halting trading and deposits of XRP for its US customers on the 8th of January 2021. However, US customers will still be able to withdraw their XRP after the date.
According to the official announcement, Bitstamp customers from other jurisdictions will not be affected. The exact statement by the exchange was as follows.
In light of the recent SEC filing against Ripple Labs Inc., which alleges that XRP is a security, we are going to halt all trading and deposits of XRP for our US customers on 8 January 2021 at 9 PM UTC.
We will closely follow the unfolding situation and continue to adapt accordingly.
Our US customers will still be able to withdraw XRP from Bitstamp. Customers from other countries are not affected.
Thank you for your continued support in this matter. We will post updates here and on Twitter as more information becomes available.
XRP takes Another Nosedive to the $0.30 Support Area
News of Bitstamp halting deposits and trading for its US customers in January has caused the value of XRP to take another brief nosedive. Prior to the announcement, XRP was attempting to break the $0.38 resistance level. As soon as the announcement was made by Bitstamp, XRP dropped to $0.278 – a 27% drop – before bouncing back to the $0.30 support area.
Other Major Crypto Exchanges Will Follow
As the old saying goes, where there is smoke, there is fire. Bitstamp opting to halt deposits and trading for US customers is most likely the precursor of other major exchanges choosing a similar path as the Ripple/SEC lawsuit begins. Therefore, XRP might continue on a downward spiral as traders and investors anticipate similar moves by other crypto exchanges.
