In a surprising turn of events, the XRP token has surged an impressive 18% over the past 24 hours, outpacing the gains of Bitcoin and other major cryptocurrencies. This unexpected rally comes amidst a shifting regulatory climate in the United States, which has bolstered the growth of tokens previously hindered by actions from the Securities and Exchange Commission (SEC).
According to insider sources, the surge in XRP’s price can be attributed to growing optimism among traders that a crypto-friendly Trump administration could benefit tokens associated with US-based companies like Ripple Labs and Uniswap. The speculation is that these companies will play a more significant role in driving value for token holders under a more favorable regulatory environment.
Bitcoin Pulls Back as Traders Eye $120,000 Target
While XRP stole the spotlight, Bitcoin and other major currencies slipped by up to 4% due to profit-taking that occurred in the late hours of Thursday in the United States. This pullback was an expected market reaction after several days of upward momentum.
The decline was catalyzed by aggressive comments from Federal Reserve Chair Jerome Powell in his latest speech, which dampened hopes for swifter rate cuts. Powell emphasized that the economy is not sending any signals that would necessitate a rush to lower rates, and that the current strength in the economy allows the Fed to make decisions cautiously.
Despite the short-term pullback, the bullish sentiment for Bitcoin and the broader market remains unchanged. Traders at QCP Capital shared their outlook in a Telegram broadcast:
In light of Bitcoin’s impressive rally since the US elections, our view is that $100,000 – $120,000 may not be too far off. We believe the underlying strength in BTC represents a systemic market shift in anticipation of Trump’s return to office.
– QCP Capital Traders
The traders further elaborated on how Trump’s potential crypto-friendly policies could support Bitcoin’s price trajectory:
His idea of launching a strategic BTC reserve and the rotation from gold to BTC provides a strong narrative supporting BTC prices.
– QCP Capital Traders
Regulatory Shifts Boost Altcoin Rally
The recent actions by 18 US states, which filed a motion to cite the SEC and its commissioners, including Chair Gary Gensler, accusing them of unconstitutional abuse of power against the crypto sector, have fueled the rally in altcoins like XRP. As the regulatory climate evolves, tokens associated with US-based projects are expected to benefit from a more supportive environment.
This shift in sentiment has led to a divergence in performance between Bitcoin and altcoins. While Bitcoin pulled back from its recent highs, XRP extended its 7-day gains to 50%, reaching levels last seen in June 2023. Other notable altcoins, such as UNI, are also expected to benefit from the changing regulatory landscape.
Market Reacts to Fed Chair’s Comments
The broader crypto market reacted to Jerome Powell’s comments, with Bitcoin falling to $88,000 from a peak of $93,000 on Thursday. The decline triggered over $120 million in liquidations on both long and short bets. Ethereum and Solana dropped 3.5%, while meme-themed tokens Dogecoin and Shiba Inu shed up to 5%.
The market now estimates a 66% probability of a 25 basis point cut at the December FOMC meeting, down from 83% on Thursday. This shift in expectations contributed to the short-term pullback in crypto prices.
Looking Ahead: Crypto Market Sentiment
Despite the recent volatility, the overall sentiment in the crypto market remains bullish. The potential for a more crypto-friendly regulatory environment under a Trump administration, combined with the ongoing altcoin rally, has investors and traders optimistic about the future.
As the US political landscape continues to evolve and the regulatory climate shifts, the crypto market is poised for further growth and adoption. The surprising surge in XRP’s price serves as a testament to the potential impact of these changes on individual tokens and the market as a whole.
In the coming weeks and months, market participants will closely monitor developments in US politics, regulatory actions, and the performance of key cryptocurrencies like Bitcoin and XRP. As always, the crypto market remains a dynamic and exciting space, with the potential for significant gains and the ever-present risk of volatility.
