Crypto Market Soars as Fed Holds Rates Steady, SEC Drops Ripple Lawsuit
Major cryptocurrencies, including Bitcoin, XRP, and Ethereum, surged on Thursday following the Federal Reserve’s decision to maintain interest rates at 4.25%-4.50%. This move sparked a bullish wave across the market, driving significant gains before the daily close.
- Bitcoin and Ethereum Lead the Charge: Bitcoin reclaimed the $87,000 level, while Ethereum pushed past $2,000, signaling renewed strength in the top-tier crypto assets.
- Litecoin and Cardano Lag Behind: Meanwhile, Litecoin struggled below $100 and Cardano remained under $0.8, failing to match the momentum of their peers.
XRP Shines with Legal Victory
XRP, the third-largest cryptocurrency by market cap, jumped 8.31% to $2.50, boasting a market capitalization of $145.42 billion. Its trading volume exploded by 256.45% to $10.53 billion, fueled by a major regulatory breakthrough. Ripple CEO Brad Garlinghouse announced at the Digital Assets Summit in New York that the SEC had dropped its nearly four-year lawsuit against the company, sending XRP prices soaring 11% to $2.52. However, Garlinghouse is contemplating a cross-appeal to recover $125 million still held in escrow.
Solana Eyes $150 with ETF Boost
Solana also grabbed headlines, testing a critical resistance at $133. The CoinDCX Research Team noted that a breakout could propel it to $150, with bullish market sentiment suggesting gains could extend through 2025. Adding fuel to the fire, the first Solana ETF is slated to launch in the U.S. tomorrow, potentially igniting a fresh bull run for the cryptocurrency.
Fed’s Stance and Economic Context
The Fed’s decision to keep interest rates steady provided a tailwind for risk assets like cryptocurrencies. Fed Chair Jerome Powell highlighted that tariffs imposed by the President are complicating inflation efforts, though the unchanged rates offered a clear boost to market optimism.
What’s Driving the Rally?
The crypto market’s bullish turn stems from a potent mix of factors:
- The Fed’s steady interest rate policy.
- A landmark regulatory win for Ripple and XRP.
- Anticipation around the Solana ETF launch.
With these developments, the stage is set for a potentially prolonged uptrend, as market sentiment turns decisively positive.