XRP experienced a notable 17% surge in the past 24 hours, outpacing Bitcoin (BTC) and other major cryptocurrencies as the shifting regulatory landscape in the U.S. fueled growth in tokens previously restrained by the Securities and Exchange Commission (SEC).
XRP traded above 82 cents early on Friday during Asian market hours, extending its weekly gains to 50% and reaching levels not seen since June 2023. This rally followed a legal action filed by 18 U.S. states against the SEC and its chairman, Gary Gensler, accusing them of unconstitutional actions aimed at stifling the crypto industry.
Market sentiment has been influenced by speculation that a potential crypto-friendly administration under former President Donald Trump could favor U.S.-based companies like Ripple Labs (the issuer of XRP) and decentralized exchanges such as Uniswap (UNI). Traders believe that such a shift in policy could drive token prices higher, especially for projects based in the U.S.
On the other hand, Bitcoin and other major cryptocurrencies saw declines of up to 4%, primarily driven by profit-taking following a strong rally. The drop was exacerbated by comments from Federal Reserve Chairman Jerome Powell, who indicated that the U.S. economy’s strength might delay anticipated rate cuts. “The strength we are currently seeing in the economy allows us to take a more measured approach to policy decisions,” Powell said during his speech in Dallas. This has led the market to revise its expectations for a rate cut in December, reducing the probability from 83% to 66%.
Bitcoin’s price fell to $88,000 from its peak of $93,000 on Thursday, causing more than $120 million in liquidations across both bullish and bearish positions. Ether (ETH) and Solana (SOL) also dropped around 3.5%, while meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) saw losses of up to 5%.
Despite these setbacks, overall market sentiment remains positive. The CoinDesk 20 Index, which tracks the largest cryptocurrencies by market cap, remained largely unchanged. Additionally, Pepe (PEPE), a meme coin that was recently added to the top-20 tokens, corrected by 8% after a massive 75% spike the previous day following its listing on Coinbase.
In the long term, QCP Capital analysts remain confident in Bitcoin’s potential. They foresee a price target of $100,000 to $120,000, citing Bitcoin’s recent rally and the anticipation of significant market shifts ahead of the 2024 U.S. elections. “Bitcoin’s underlying strength signals a broader shift, and the idea of a U.S. strategic Bitcoin reserve, along with the pivot from gold to Bitcoin, supports a bullish narrative for the asset,” QCP Capital said in their update.
