Markets News Report
July 14, 2023

DeFiance Capital Founder Arthur Cheong Believes Ripple’s SEC Case Win Marks the Turning Point from Bear Market

In Brief

DeFiance Capital founder Arthur Cheong declared the bear market over after Ripple secured a partial win in its legal battle with the SEC.

Cheong foresees that Blackrock’s Bitcoin ETF filing will drive continued institutional acceptance of crypto as an asset class.

He also said that the bear market “washed out” crypto tourists and current holders won’t sell in the near term.

In a tweet on Friday, DeFiance Capital Founder Arthur Cheong declared that the bear market may have come to an end after Ripple secured a partial win in its legal battle against the U.S. Securities and Exchange Commission (SEC) on Thursday. 

Outlined several key factors supporting his optimistic outlook, Cheong first drew attention to improving macroeconomic conditions, noting the decline in the Consumer Price Index (CPI) and the positive real interest rate. He went on to suggest that the possibility of rate cuts in the coming year is more likely than not, indicating potential easing measures.

Another significant factor Cheong highlighted is the growing acceptance of cryptocurrencies as an asset class by institutional investors. He pointed to Blackrock’s Jun 15 application for a Bitcoin Exchange-Traded Fund (ETF) as an example. 

Being one of the world’s largest asset managers, Blackrock’s move signals the increasing institutional interest in the crypto space. Popular crypto Twitter account WhaleWire echoed Cheong’s sentiment, saying that the crypto space will “see billions of inflows from institutions and investors.”

In other news, the SEC has acknowledged Bitwise’s Bitcoin ETF after the crypto asset manager refiled its application on Jun 28. On Thursday, Bitwise announced that its Crypto Industry Innovators ETF recently surpassed $100 million in assets under management.

Cheong further emphasized the weakened position of the SEC in classifying tokens as securities, particularly in light of their failure to secure a victory against Ripple, saying that XRP was “the one most likely to be deemed security token.” This outcome could have far-reaching implications for other projects facing similar regulatory challenges from the SEC.

Playing devil’s advocate, Twitter user @NandoNFTs speculated that the SEC might “appeal all the way to the Supreme Court to save face.”

Examining market dynamics, Cheong observed that many short-term investors have exited the market, leaving behind long-term holders who are less likely to sell in the near future. However, he did acknowledge the possibility of selling pressure from coins with predetermined unlock schedules.

Furthermore, Cheong pointed out a significant under-allocation of investment in cryptocurrencies beyond Bitcoin and Ethereum, highlighting the potential for catch-up growth in other digital assets.

Lastly, Cheong expressed enthusiasm regarding Hong Kong’s crypto-friendly approach to regulation, which he believes will open the floodgates for Asian financial institutions to enter the crypto market in a legitimate manner. This development holds the potential for increased participation and investment from the region.

While Cheong has an optimistic outlook for the crypto market, the outcome of Ripple’s legal battle and how these factors will shape the market’s trajectory remains uncertain as market developments are known to be unpredictible.

Disclaimer

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About The Author

Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via [email protected] with press pitches, announcements and interview opportunities.

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Cindy Tan
Cindy Tan

Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via [email protected] with press pitches, announcements and interview opportunities.

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