XRP Leads Crypto Gains with 11% Jump as South Korean Trading Boosts Market Sentiment
XRP experienced an 11% surge on Thursday, outpacing other major cryptocurrencies as trading volumes from South Korea-driven exchanges spiked significantly. A CoinDesk analysis this week highlighted the sharp increase in trading activity on UpBit, a leading Korea-based exchange, where $1.3 billion in XRP was traded. Historically, such high volumes from South Korea often signal increased volatility, usually to the upside for the digital asset.
The rally in XRP comes amid a broader market bounce as Bitcoin (BTC) rose above $95,000, recovering from recent declines. The cryptocurrency market is entering the new year with heightened optimism, bolstered by expectations of more crypto-friendly regulations under the incoming U.S. administration led by President-elect Donald Trump, who has voiced support for digital assets, including a proposed bitcoin reserve.
Other major tokens also saw solid gains. Cardano (ADA), Solana (SOL), and Chainlink (LINK) all posted increases of up to 8%, while Ethereum (ETH) and Binance Coin (BNB) rose by 3%. Meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) added 5%, contributing to a broader 5.8% rise in the CoinDesk 20 index, which tracks the largest liquid cryptocurrencies by market capitalization, excluding stablecoins.
One key factor driving optimism for 2025 is the upcoming Bitcoin halving event in 2024, which traditionally has led to a bullish market trend due to a reduction in the supply of new bitcoins entering circulation. The crypto market is often influenced by these four-year cycles, with predictions pointing to strong performance in areas like AI-driven projects, memecoins, and real-world asset tokenization in the coming years.
In addition to the halving event, firms like Galaxy Research are predicting significant institutional involvement in Bitcoin in 2025. Galaxy forecasts that several Nasdaq-100 companies and nation-states will adopt Bitcoin as part of their investment strategy. The firm has set a price target of $185,000 for Bitcoin and $5,500 for Ether (ETH) in the coming year.
QCP Capital, based in Singapore, shares a similar outlook, noting that the start of 2025 could see major institutional reallocations within the crypto space. “As Bitcoin continues to gain adoption from a wide range of institutional players, we expect to see a stronger market presence, reducing volatility and reinforcing Bitcoin’s dominance,” the firm commented in a recent update. “This shift will likely bring Bitcoin’s price behavior closer to traditional equities.”
As Bitcoin becomes more widely accepted, some experts believe that its volatility will decrease, making it an even more attractive asset for institutional investors looking for stability and long-term growth.
Augustine Fan, head of insights at SOFA, emphasized that Bitcoin’s increasing correlation with the S&P 500 signals its growing status as a mainstream asset. “Bitcoin’s relationship with traditional markets is becoming more evident, with its realized volatility continuing to decrease, which could provide diversification benefits for traditional portfolios,” Fan noted in a recent Telegram message.
Fan concluded, “As the crypto market matures, we expect continued declines in volatility, ultimately leading to greater adoption and integration into mainstream investment strategies.”
