The cryptocurrency market has surged 4%, gaining $50 billion with Bitcoin and XRP leading recovery ahead of the Federal Reserve’s decision. Bitcoin reached $84,900 amid strong ETF inflows, while XRP surged after the SEC ended its lawsuit against Ripple. Other altcoins followed suit, but BNB lagged. Legislative initiatives and controversies round out the evolving financial landscape in crypto.
The cryptocurrency market bounced back, rising by 4% and adding over $50 billion to reach a total of $2.8 trillion as of Wednesday. Anticipation around the U.S. Federal Reserve’s potential decision to pause interest rate hikes fueled Bitcoin’s ascendance, hitting a peak price of $84,900. Meanwhile, the SEC’s conclusion of its lawsuit against Ripple propelled XRP above $2.59, marking significant momentum after two weeks of stagnation.
Bitcoin’s price peaked at $84,800, highlighting a 4% increase. However, the continued struggle to exceed $85,000 may force short traders to act, bringing $697 million in leveraged positions into play. Bitcoin ETFs saw a surge in demand with $209 million in inflows, suggesting a robust interest among corporate investors alongside the speculated Fed rate pause, paving the way for potential further inflows in the coming days.
In the altcoin sector, XRP led a vibrant rally as short-sellers kept Bitcoin below $85,000. The anticipated decision from the Federal Reserve hinted at stability, but what truly sparked interest was Ripple CEO Brad Garlinghouse’s announcement about the lawsuit’s conclusion, inspiring optimism in regulatory-sensitive projects and those linked by ETF filings.
XRP surged 13.11%, with Toncoin (TON) experiencing a standout rise of 38.22%. Ethereum reclaimed the $2,000 resistance after a 9% increase. Other notable gains included Solana and Cardano, while Chainlink improved by 7.14%, capitalizing on revitalized decentralized finance activities. However, BNB was an outlier, dropping 3.22% amidst the market rise, signaling a possible shift towards new investment rather than movement of existing holdings.
In other news, filmmaker Carl Erik Rinsch faced allegations of fraud after misdirecting $11 million from Netflix for personal investments instead of his project. North Carolina made waves by proposing a bill to invest up to $950 million into Bitcoin for innovation. Meanwhile, Crypto.com faced backlash over a governance vote reversing a planned CRO token burn, stirring concerns about centralization and profit motive.
Fintech firms are gaining traction in seeking bank charters, encouraged by an expected shift in regulatory attitudes under the Trump administration. This move could open doors for increased credibility and services in the cryptocurrency sector, despite the heightened regulatory oversight that comes with bank status.
In summary, the cryptocurrency market is reawakening, with significant movements in Bitcoin and XRP leading the charge amidst a broader market recovery. The SEC’s resolution against Ripple energized altcoin activities, while other news stories encapsulate evolving dynamics in the crypto and fintech landscapes. Lawmakers pushing for Bitcoin investments and controversies within exchanges reflect the ongoing complexities of this field, all while regulatory changes loom on the horizon.
Original Source: www.fxstreet.com
