XRP Crypto Surge 17% Signals Market Optimism Over Regulatory Changes and Political Shifts
XRP crypto has experienced a remarkable 17% surge in the past 24 hours, outperforming Bitcoin (BTC) and other major cryptocurrencies. This significant price movement comes amid a shift in the U.S. regulatory landscape, which has created a more favorable environment for digital assets that were previously affected by actions from the U.S. Securities and Exchange Commission (SEC).
As of Friday’s early Asian trading hours, XRP rose above $0.82, marking a 50% gain over the past week and reaching levels not seen since June 2023. The rally coincided with the announcement that 18 U.S. states have filed a lawsuit against the SEC and its commissioners, including Chairman Gary Gensler, accusing the agency of overreaching and stifling the growth of the crypto industry.
This development has sparked speculative optimism in the market, with traders anticipating that a more crypto-friendly administration, particularly under former President Donald Trump, could benefit U.S.-based crypto companies like Ripple Labs (the company behind XRP) and Uniswap (UNI). Such companies are seen as playing a crucial role in enhancing token value and expanding market adoption.
In contrast, Bitcoin (BTC) and other major cryptocurrencies experienced slight declines. BTC dropped 4% after peaking at $93,000 on Thursday, following profit-taking toward the end of U.S. trading hours. The correction came after Federal Reserve Chairman Jerome Powell’s hawkish comments regarding the U.S. economy and interest rate policy. In a speech at a Dallas conference, Powell stated that the economy is not signaling the need for immediate rate cuts, which dampened expectations for a rapid reduction in interest rates.
As of Friday, the market is now pricing in a 66% chance of a 25 basis point rate cut at the December Federal Open Market Committee (FOMC) meeting, a decrease from the 83% probability priced in just a day earlier.
The drop in BTC’s price caused over $120 million in liquidations across both long and short positions. Ether (ETH) and Solana (SOL) saw losses of 3.5%, while meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) fell by up to 5%.
The broader crypto market, tracked by the CoinDesk 20 (CD20) index, showed little overall change. Newer tokens like Pepe (PEPE), which surged 75% following its Coinbase listing, corrected by 8%. Despite this, the underlying sentiment for Bitcoin and the broader market remains optimistic.
Traders at QCP Capital noted that the bullish momentum for Bitcoin remains strong, especially in light of the U.S. election and the potential return of Trump to office. In a Telegram update, QCP traders suggested that BTC’s rally could drive the price to between $100,000 and $120,000 in the near future, highlighting the narrative of a strategic BTC reserve and a potential shift from Gold to Bitcoin as a store of value under Trump’s leadership.
As the regulatory landscape evolves and market sentiment shifts, many investors are watching XRP, Bitcoin, and other major cryptocurrencies for further signs of growth and potential opportunities.
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