XRP Outperforms the Market by 17% as Crypto Rally Stagnates

XRP has surged 17% in the past 24 hours, outpacing gains in bitcoin (BTC) and major stocks as a changing US regulatory environment fuels growth in the tokens previously hampered by Securities and Exchange Commission (SEC) actions.

XRP traded above 82 cents earlier in the day, reaching levels last seen in June 2023, extending its 7-day gain to 50%. The move comes as 18 US states have filed to sue the SEC and its commissioners, including Gary Gensler. The accusations are that the commissioners are unconstitutionally trying to go beyond their authority against the crypto industry.

Speculative optimism among investors is that a crypto-friendly Trump administration could benefit tokens linked to US-based companies such as Ripple Labs (XRP) and Uniswap (UNI).

BTC and major cryptocurrencies fell as much as 4%, an expected market reaction after several days of growth.

The decline was supported by Fed chairman Jerome Powell’s hawkish comments in his latest speech, dampening hopes for a rate cut. “Our economy is not giving any signal that we should rush to lower rates,” Powell said at a conference in Dallas. “The strength our economy is showing right now gives us the flexibility to approach our decisions carefully.”

While yesterday, the probability of a 25 basis point cut at the December FOMC meeting was 83%, as of today, this probability drops to 66%.

Similarly, the decline in bitcoin, which fell from yesterday’s peak of $ 93,000 to $ 88,000, caused the liquidation of over $ 120 million in both bullish and bearish bets. Ether (ETH) and Solana’s SOL index fell 3.5 percent, while dog-themed dogecoin (DOGE) and shiba inu (SHIB) lost up to 5 percent.

CoinDesk 20 (CD20), which tracks the largest tokens by market cap, showed little change.

Top 20 pepe (PEPE) corrected 8% after surging 75% yesterday following a Coinbase listing that pushed the frog-themed meme to a market cap of $10 billion for the first time.

With all this said, bullish sentiment in bitcoin and the overall market remains unchanged.

QCP Capital traders say the following in the Telegram broadcast held yesterday:

“Given Bitcoin’s impressive rally since the US election, we think $100,000 – $120,000 may not be too far off. We believe BTC’s underlying strength represents a systematic shift in the market in anticipation of Trump’s return to office.”

“Trump’s idea of ​​launching a strategic BTC reserve and switching from gold to BTC provides a strong narrative supporting prices.”