In a stunning turn of events, the XRP token has surged by an impressive 18% over the past 24 hours, significantly outpacing gains posted by Bitcoin and other major cryptocurrencies. This explosive growth comes as the regulatory climate in the United States appears to be shifting in favor of digital assets, providing a much-needed boost to tokens that have previously been hindered by actions from the Securities and Exchange Commission (SEC).
The dramatic rally saw XRP trading above 82 cents in the early hours of Friday’s Asian trading session, extending its 7-day gains to a remarkable 50% and reaching levels not seen since June 2023. The surge coincides with a groundbreaking move by 18 US states to file a lawsuit against the SEC and its commissioners, including Chairman Gary Gensler, accusing them of unconstitutional overreach in their approach to regulating the cryptocurrency industry.
Regulatory Shifts Spark Optimism
Market speculators are increasingly optimistic that a crypto-friendly Trump administration could benefit tokens linked to US-based companies, such as Ripple Labs (associated with XRP) and Uniswap (UNI). The reasoning behind this sentiment is that these companies are more involved in driving value for token holders, and a supportive regulatory environment could further bolster their growth prospects.
Bitcoin Retreats Amid Profit-Taking
Meanwhile, Bitcoin and other major cryptocurrencies experienced a pullback of up to 4% amid profit-taking during the late US trading hours on Thursday. This reaction was largely expected following several days of sustained growth in the market.
The downturn was catalyzed by hawkish comments from Federal Reserve Chair Jerome Powell during his latest speech, which dampened hopes for a swifter pace of interest rate cuts. According to Powell, “The economy is not sending any signals that we need to rush to cut rates. The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully.”
Market Pricing in December Rate Cut
As of Friday, the market is pricing in a 66% chance of a 25 basis point rate cut at the upcoming December FOMC meeting, down from 83% on Thursday. The pullback in Bitcoin saw the cryptocurrency drop to $88,000 from Thursday’s peak of $93,000, with the decline triggering over $120 million in liquidations across both bullish and bearish bets.
Ethereum (ETH) and Solana’s SOL fell by 3.5%, while the dog-themed meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) shed up to 5% of their value. The CoinDesk 20 (CD20), a liquid index tracking the largest tokens by market capitalization, was little changed overall.
PEPE’s Meteoric Rise Continues
PEPE (PEPE), a new entrant to the top-20 tokens, hit an 8% bump following a staggering 75% surge on Thursday in the wake of its Coinbase listing. The frog-themed meme token briefly achieved a $10 billion market capitalization for the first time.
Bullish Sentiment Remains Strong
Despite the recent pullback, bullish sentiment for Bitcoin and the broader market remains unwavering. According to a Telegram broadcast from QCP Capital, “Given the impressive rally in Bitcoin since the US election, 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 hopes of Trump’s return to office.”
His (Trump’s) idea of launching a strategic BTC reserve and pivoting from Gold to BTC, provides a strong narrative supporting BTC price.
QCP Capital Traders
As the cryptocurrency market continues to evolve and react to shifting political and regulatory landscapes, investors and traders alike are keeping a close eye on developments that could further impact the trajectory of digital assets. With XRP leading the charge and Bitcoin poised for potential new highs, the stage appears set for an exciting and transformative period in the world of cryptocurrencies.
