The rally in cryptocurrencies, driven by factors such as political optimism, the launch of new financial products and the moderation of inflation in the US, renewed market optimism.
Cryptocurrencies regain momentum and accelerate the upward trend. Bitcoin (BTC) registers a strong rebound in the last 24 hours and is trading now very close to US$100,000according to the Binance quote. Ethereum (ETH) experiences a more pronounced increase, advancing almost 5% and consolidating US$3,300.
The ‘altcoin’ market is also turning green. Tokens such as solana (SOL), dogecoin (DOGE), and tron (TRX) post gains of over 5%, while other coins such as cardano (ADA), shiba inu (SHIB), and polkadot (DOT) rise with more moderate growth.
One of the main protagonists of the day is XRPwhich has reached maximums not seen for six years. This rally is attributed to a growing number of strategic partnerships, the recent launch of Ripple’s RLUSD stablecoin, and speculation about the possibility of an XRP spot exchange-traded fund (ETF) being approved. According to sector experts, this type of financial instruments could attract greater institutional attention.
What the market analyzes
In a recent interview, Monica Long, president of Ripple, expressed optimistic expectations about the approval of a spot ETF “very soon”, especially considering the current political context under the Donald Trump administration. In fact, according to JP Morgan, SOL and XRP ETFs Could Outperform ETH Funds in Their First Six Months of Life given current market conditions.
The proximity of Donald Trump’s inauguration, scheduled for January 20, is acting as a key catalyst. According to Matt Mena, crypto asset strategist at 21Shares, Bitcoin is likely to break the $100,000 barrier before the president-elect takes office.
This level would not only be a psychological but also a technical milestone, positioning Bitcoin to surpass its all-time high of 108,000 and set new records as optimism around risk assets grows.
Another factor that is contributing to this rebound is the recent inflation data in the United States. The CPI rose in December to 2.9% year-on-year compared to 2.7% in November, although the underlying rate moderated its growth. According to analysts, this data, along with positive results in the banking sector, is fueling renewed appetite for risk assets after a period of uncertainty over the possibility of tighter monetary policies by the Federal Reserve (Fed).
The recent Federal Reserve report shows a reduction in expectations for interest rate cuts in 2025 by half, to 50 basis points, due to expected policies under the Trump administration. The market now anticipates that interest rates will end the year at 3.93%, adjusting previous projections slightly downward. Despite this, the expectation of a possible rate cut in May persists, which has generated renewed optimism in the market.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
