XRP leads the crypto market rally, regaining its status as the third-largest cryptocurrency, while the US Securities and Exchange Commission (SEC) escalates its legal battle with Ripple.
XRP Price Recovers
Ripple (XRP) price skyrocketed 16% in the last 24 hours, breaking past the $3.16 mark early Thursday during European trading hours as the whole crypto market recovered.
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The coin surged back to price levels not seen since its all-time high of $3.84 in early January 2018, reclaiming its position as the third-largest cryptocurrency with a $178.3 billion market cap.
Other top cryptocurrencies saw more modest gains, with Bitcoin rising 2.1%, Solana up 5.64%, and Ethereum increasing 3.25%.
The total crypto market capitalization climbed 2.5%, currently reaching $3.47 trillion, following the release of the latest US inflation data report.
CPI Data Fuels Crypto Market Rally
On January 15, the US Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) data, offering a snapshot of inflation trends. The report showed a 2.9% inflation rate for December, 0.4% higher than the previous month, in line with market expectations.
The news boosted financial markets as investor hopes grew that the Federal Reserve may avoid aggressive rate hikes.
Both stock and crypto markets surged, with Bitcoin briefly surpassing the $100,000 mark once again.
Expectations of Crypto-friendly Policies
Market optimism surrounding crypto-friendly policies and an overhaul of digital asset regulation in the U.S. has surged as Donald Trump prepares to assume the presidency on January 20.
XRP has been one of the standout performers, soaring 488% since Trump’s election victory.
Large-scale holders, or “whales,” have also ramped up their accumulation. Addresses holding between 1 million and 10 million XRP tokens increased their holdings by 1.4 billion XRP—valued at approximately $3.8 billion—since mid-November, according to data from Santiment.
Adding to the optimism are Ripple’s growing partnerships, the launch of its stablecoin RLUSD, and speculation about a potential XRP ETF, hinted at last week by Ripple President Monica Long.
On the Flipside
- On Tuesday, January 15, SEC appealed the court ruling that determined XRP is not a security when sold publicly in 2018. If successful, the appeal could lead to stricter regulatory oversight of XRP, affecting its adoption and US market trading.
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