Bitcoin and Crypto Market Surge: Fed Policy and XRP's SEC Victory Drive Gains

Bitcoin and Crypto Market Surge: Fed Policy and XRP's SEC Victory Drive Gains

Bitcoin and the broader crypto market saw significant gains on Thursday, driven by improved risk sentiment following the Federal Reserve's decision to maintain its rate cut projections. The Fed's stance, signaling no drastic policy changes despite economic uncertainty, bolstered investor confidence. Bitcoin rose 3% to $85,775.5, tracking gains in risk-driven markets.

XRP Leads Altcoin Rally After SEC Case Dismissal

XRP emerged as a standout performer, surging 7.3% to a two-week high of $2.4599 after the SEC dropped its long-running lawsuit against Ripple. This move, part of a broader regulatory shift under the Trump administration, has been viewed as a positive sign for the crypto industry. The SEC, now led by pro-crypto figures, including Chair Paul Atkins, has also recently dropped cases against major exchanges Coinbase and Kraken.

Broader Crypto Market Gains

The crypto market rally extended beyond Bitcoin and XRP, with major altcoins posting strong gains. Ether, the second-largest cryptocurrency, rose 4.1% to $2,018.12. Cardano and Solana climbed 2.9% and 6.4%, respectively, while Polygon gained 2.6%. Meme tokens also joined the rally, with Dogecoin up 4.1% and $TRUMP rising 3.6%.

Fed's Impact on Crypto Markets

The Fed's decision to keep interest rates unchanged and its projection of a 50 basis point rate cut by year-end further supported the rally. Lower rates are seen as favorable for speculative assets like cryptocurrencies. Wall Street's recovery from six-month lows also contributed to the positive sentiment, with crypto markets closely tracking equity gains.

Outlook: Improved Sentiment and Regulatory Clarity

The combination of favorable Fed policy and regulatory clarity, particularly for XRP, has reignited optimism in the crypto sector. Bargain buying, following a month of heightened risk aversion, also played a role in this week's gains. As markets digest the Fed's outlook and the SEC's pro-crypto stance, the near-term trajectory for cryptocurrencies appears increasingly bullish.