XRP has surged 17% over the past 24 hours, outpacing gains in Bitcoin (BTC) and major cryptocurrencies. This rally comes amid changes in the U.S. regulatory landscape. XRP has gained in value amid an atmosphere that has revived growth opportunities that were previously stymied by the Securities and Exchange Commission (SEC).$XRP
During the day, XRP traded above 82 cents, reaching levels in June 2023, a 50% increase in the last 7 days. This jump came as 18 US states began filing lawsuits against the SEC and its chairman, Gary Gensler. The lawsuit includes allegations that SEC officials are trying to unconstitutionally exceed their authority against the crypto industry.
Investor Optimism Linked to Trump Administration’s Crypto-Friendly Policies
Investors are optimistic that crypto-friendly policies could be re-enforced after Donald Trump’s presidency, benefiting U.S.-based companies like Ripple Labs (XRP) and Uniswap (UNI), and could pave the way for a more flexible approach to crypto regulation.
BTC and Major Cryptocurrencies Enter Market Correction
Bitcoin (BTC) and other major cryptocurrencies have entered an expected correction after several days of growth. BTC lost up to 4%, while Ether (ETH) and Solana (SOL) dropped by 3.5% respectively. Dogecoin (DOGE) and Shiba Inu (SHIB), as meme tokens, lost around 5%.
This decline is due to hawkish statements made by Federal Reserve Chairman Jerome Powell. Powell lowered expectations for a rate cut, saying at a conference in Dallas that the economy did not show any immediate need for a rate cut. "The strength of our economy gives us the flexibility to approach our decisions carefully," Powell said.
Chances of Interest Rate Cuts Are Decreasing
Yesterday, the probability of a 25 basis point rate cut at the Federal Open Market Committee (FOMC) meeting was 83%, but as of today, this probability has decreased to 66%.
Major Liquidations in Bitcoin and Crypto Market
Bitcoin has experienced a major drop, falling from $93,000 to $88,000. This drop resulted in liquidations of over $120 million in both long and short positions in the crypto market. Ether (ETH) and Solana (SOL) also lost value with declines of 3.5%, while meme tokens Dogecoin (DOGE) and Shiba Inu (SHIB) dropped by up to 5%.
Pepe (PEPE) Continues to Play in the Market$PEPE
The CoinDesk 20 (CD20) index showed little change despite the big market swings. However, meme tokens like Pepe (PEPE) are drawing attention. PEPE, which has a market value of over $10 billion since being listed on Coinbase, experienced an 8% correction after surging 75% yesterday.
Bitcoin and Market Optimism Continues
Despite all these declines, the bullish sentiment in Bitcoin and the overall crypto market continues. QCP Capital traders made optimistic predictions about the future of Bitcoin in a Telegram post yesterday.
“Considering Bitcoin’s impressive rally following the US elections, we believe $100,000-$120,000 may not be far off,” QCP Capital said, predicting that Trump’s return to office could create a systemic shift in the market.
“Trump’s strategy of launching a BTC reserve and shifting from gold to BTC creates a strong narrative supporting prices,” he added. This strategy could be a major catalyst for Bitcoin’s future rally.