XRP surged 17% in 24 hours, outpacing Bitcoin and the rest of the market. XRP traded above $0.82 Friday morning, up 50% in 7 days, a level last seen in June 2023. Based on available reports, market analysts attribute XRP’s move to a shift in the US regulatory climate. This jump came as 18 states reportedly sued the Securities and Exchange Commission (SEC), accusing them of overreaching in the crypto space.
This has led to traders thinking a crypto-friendly administration could be good for tokens of US based projects like XRP and UNI. XRP has been at odds with the SEC for years and has been regulatory constrained. QCP Capital traders said “the underlying strength in BTC is a systemic move in the market ahead of Trump’s return to office” implying a broader bullishness on US project tied cryptos.
$120M in liquidations as Bitcoin pulls back after Fed comments
Bitcoin, which rallied to $93,000 recently, pulled back to $88,000 and saw $120m in liquidations across exchanges. This was largely driven by hawkish comments from Federal Reserve Chair Jerome Powell at a Dallas conference. Powell said, “The economy is not sending any signals that we need to be in a hurry to lower rates”, which killed the sentiment and lowered expectations for a rate cut in December.
Before Powell’s comments the market was 83% chance of a 25 basis point cut in December, but that dropped to 66% after. Bitcoin’s move also dragged other major tokens down, ETH and SOL were down 3.5%, DOGE and SHIB were down 5%. This broad market sell off shows how Fed policy affects crypto price volatility especially for Bitcoin which reacted sharply to Powell’s comments and profit taking by traders.
XRP surge as regulatory winds change; Bitcoin’s rally gets volatile
Analysts bullish on Bitcoin long term
The overall market is still bullish, despite the pullback as analysts are projecting to $100,000 or more. QCP Capital’s team of analysts believe Bitcoin’s price could be between $100,000 to $120,000 if historical trends repeat, since Bitcoin rallied after the US election. In a recent Telegram broadcast they said “$100,000 – $120,000 may not be too far off, since Trump is coming back to office” which would be good for Bitcoin.
Ryan Lee, Chief Analyst at Bitget Research, is also bullish, noting that November is Bitcoin’s best month, and if BTC goes up 14.7% more, it could reach 6 figures.
XRP Surge Signals changing sentiment on US-based projects
The recent XRP surge is a sign of changing sentiment on US-based projects, especially those that have been regulatory-constrained.
Ripple Labs the company behind XRP has been regulatory constrained for years and its value and adoption has been impacted. But with regulatory pushback against the SEC’s authority now materializing in legal actions, optimism is growing on XRP’s potential under a more friendly regulatory environment.
Avocado_onchain said high outflows from miner wallets and strong demand mean Bitcoin liquidations are still strong. Analysts are still seeing strong buying and that could be bullish for Bitcoin in the long term.
Conclusion
XRP surge and Bitcoin’s pullback shows the market is changing, driven by regulatory and macro factors. XRP is gaining momentum since investors are optimistic on a Trump led administration, Bitcoin is still up for more gains despite the volatility. With big liquidations and Fed policy affecting prices, XRP and Bitcoin are in a wild ride for November.
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