XRP surged 17% in the past 24 hours, outperforming Bitcoin (BTC) and other major cryptocurrencies as the changing regulatory climate in the U.S. bolstered the growth of tokens previously hindered by the Securities and Exchange Commission (SEC).
XRP crossed 82 cents during early Friday trading in Asia, extending its weekly gains to 50%, reaching levels not seen since June 2023. The rally came after 18 U.S. states filed lawsuits against the SEC and its chairman, Gary Gensler, accusing them of overstepping their authority in regulating the crypto industry.
Market participants are speculating that a crypto-friendly U.S. administration under former President Donald Trump could be advantageous for U.S.-based crypto companies like Ripple Labs, the issuer of XRP, and decentralized platforms like Uniswap (UNI). The expectation is that such a shift in policy could drive up the value of tokens tied to these companies.
Meanwhile, Bitcoin and other large-cap cryptocurrencies saw a pullback of up to 4%, mainly due to profit-taking after a significant price rally. The correction was triggered by Federal Reserve Chairman Jerome Powell’s comments that suggested the current economic strength could delay any rate cuts. “The strength we are seeing in the economy means we can take a more cautious approach with our decisions,” Powell remarked at a conference in Dallas. This shift in tone lowered market expectations for a rate cut in December, reducing the probability from 83% to 66%.
Bitcoin’s price dropped from a high of $93,000 on Thursday to around $88,000, triggering more than $120 million in liquidations of both bullish and bearish positions. Ether (ETH) and Solana (SOL) fell by 3.5%, while meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) saw even steeper declines, losing up to 5%.
Despite this short-term pullback, overall market sentiment remains positive. The CoinDesk 20 Index, tracking the top cryptocurrencies by market cap, remained mostly unchanged. Pepe (PEPE), a meme coin that surged 75% the previous day after its listing on Coinbase, saw an 8% correction.
Looking ahead, QCP Capital traders maintain their optimistic outlook on Bitcoin, forecasting a price target of $100,000 to $120,000. They attribute Bitcoin’s current strength to a broader market shift and expect further momentum as the U.S. election approaches. “The strategic idea of the U.S. purchasing Bitcoin to build reserves, combined with a shift from gold to Bitcoin, forms a solid narrative supporting Bitcoin’s price growth,” QCP Capital added.
