Altcoins Gain Momentum with Gensler’s Exit News; XRP, SOL Rally
As Bitcoin approaches the $100,000 mark, it set another record on Thursday, hitting $99,500. Most altcoins have also outperformed Bitcoin, an early sign of capital shifting to smaller, riskier coins as Bitcoin slows.
Notably, the $100,000 price point poses a significant resistance level where investors could potentially profit from their investment. Nonetheless, 10x Research said in a report on Friday that Bitcoin is still likely to survive Christmas on the back of expanding stablecoin supply, inflows into ETFs, and call options positioning in the BlackRock Spot BTC ETF (IBIT) before rebounding to $115,000 notes.
Altcoin Rally
Altcoins are also rising as regulatory headwinds appear set to be lifted. With Gensler out, the agency’s new leadership is expected to be more open to approving investment products for small tokens and allowing staking on ETFs. XRP led the way, up 33% in 24 hours, while Cardano’s ADA gained more than 15%. Solana’s native token (SOL) hit an all-time high above $260.
Gary Gensler’s exit from the U.S. SEC on January 20 triggered bullish momentum across the cryptocurrency market. Under the Biden administration, the SEC has led a crackdown on the industry, bringing a record 46 enforcement actions last year.
XRP surges on Gensler exit news
However, the new Trump administration is now expected to devote fewer resources to regulating the industry. Furthermore, the president-elect is also reportedly considering appointing a presidential adviser dedicated to the cryptocurrency industry.
XRP is heading towards $2, having surged around 25% in the past 24 hours, and looks set to continue its advance, driven by Gensler’s exit. The increase in XRP price is part of a broader rally in the cryptocurrency market, with Bitcoin currently hovering at sub-$100,000 levels.
Is a potential XRP-ETF on the horizon?
Gensler’s resignation also fueled speculation that the SEC might drop its appeal or reach a favorable settlement with Ripple, easing the regulatory uncertainty that has suppressed the coin for nearly five years.
Additionally, a favorable outcome in its legal battle with the SEC could lead to the launch of an XRP exchange-traded fund (ETF). Notably, 21Shares, Canary Capital, and Bitwise have all submitted applications for spot XRP ETFs.
This development, if successful, would be huge for Ripple as it has had longstanding legal issues in the United States, which would drive institutional interest in the token. Notably, analysts expect XRP to hit $2 soon and then rise to $5, driven by possible positive news with the U.S. Securities and Exchange Commission (SEC) case in the coming months.
