In a surprising turn of events, the XRP token has surged a remarkable 18% over the past 24 hours, outshining the rest of the crypto market as Bitcoin’s rally takes a breather. This impressive uptick in XRP’s value comes amidst a shifting regulatory landscape in the United States, which has previously hindered the token’s growth due to actions taken by the Securities and Exchange Commission (SEC).
The recent lawsuit filed by 18 U.S. states against the SEC and its commissioners, including Chair Gary Gensler, has sparked optimism among XRP traders. The states accuse the regulatory body of unconstitutional overreach into the cryptocurrency industry. This development has led to speculation that a crypto-friendly Trump administration could benefit tokens tied to U.S.-based companies, such as Ripple Labs (associated with XRP) and Uniswap (UNI), as these firms work to increase value for token holders.
Bitcoin Dips as Traders Eye $120K Target
Meanwhile, Bitcoin and other major currencies experienced a slight dip of up to 4% due to end-of-day profit-taking in the U.S. on Thursday. This pullback was an expected market reaction following several days of growth. The downturn was triggered by hawkish comments from Federal Reserve Chair Jerome Powell in his latest speech, which dampened hopes for a quicker pace of rate cuts.
“The economy isn’t sending any signals that we should rush to cut rates,” Powell stated in remarks prepared for a conference in Dallas. “The strength we are seeing in the economy now gives us the ability to take our decisions carefully.”
– Jerome Powell, Federal Reserve Chair
As of Friday, the market was pricing in a 66% chance of a 25 basis point cut at December’s FOMC meeting, down from 83% on Thursday. Bitcoin fell to $88,000 after hitting a peak of $93,000 on Thursday, with the drop triggering over $120 million in liquidations on both long and short bets.
Altcoins Follow Bitcoin’s Lead
Ethereum (ETH) and Solana’s SOL declined by 3.5%, while dog-themed meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) shed up to 5%. The CoinDesk 20 (CD20), a liquid index tracking the top 20 tokens by market capitalization, was little changed.
Despite the minor correction, the bullish sentiment for Bitcoin and the broader market remains intact. According to traders at QCP Capital:
“Given Bitcoin’s impressive rally since the U.S. elections, we think $100,000 to $120,000 may not be that far off. We believe BTC’s underlying strength represents a systematic market shift in anticipation of Trump’s return to power.”
– QCP Capital traders
QCP further noted that Trump’s idea of launching a strategic BTC reserve and rotating from gold to BTC provides a strong narrative supporting BTC prices. As the U.S. political landscape continues to evolve and crypto-friendly policies gain traction, the stage may be set for both Bitcoin and altcoins like XRP to reach new heights in the coming months.
Key Takeaways
- XRP surges 18% in 24 hours, outpacing Bitcoin and major currencies
- Shifting U.S. regulatory climate boosts optimism for XRP and other tokens tied to U.S.-based companies
- Bitcoin dips slightly but traders maintain $120K price target
- Altcoins follow Bitcoin’s lead, with ETH, SOL, DOGE, and SHIB experiencing minor corrections
- Bullish sentiment remains strong as crypto-friendly policies gain momentum in the U.S.
As the cryptocurrency market continues to evolve and adapt to changing political and regulatory environments, investors and traders will be closely monitoring the performance of both established players like Bitcoin and emerging contenders such as XRP. With the potential for a more crypto-friendly administration in the U.S., the stage may be set for a new era of growth and adoption in the digital asset space.
