Altcoins Gain Momentum with Gensler’s Exit News; XRP, SOL Rally
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With Bitcoin approaching closer to the $100,000 mark, it has yet again achieved another record on Thursday at $99,500. Most altcoins also outperformed BTC, which is an early sign of capital rotation into smaller, riskier tokens as bitcoin’s pace holds back.
Notably, the $100,000 price point poses a significant resistance level, where investors might take profits on their investments. Still, there’s a chance of BTC rallying to $115,000 by Christmas, backed by broadening stablecoin supply, inflows into ETFs, and bullish options positioning on BlackRock’s spot BTC ETF (IBIT), 10x Research shared in a Friday note.
Altcoins Rally
As the regulatory headwinds look all set to clear, altcoins are also rallying. With Gensler’s exit, it is anticipated that the agency’s new leadership will be more open to approving investment products for smaller tokens and allowing staking for ETFs. XRP led the rally, gaining 33% in 24 hours and Cardano’s ADA rose over 15%. Solana’s native token (SOL) hit an all-time high above $260.
Gary Gensler’s exit from the US SEC on January 20 has sparked bullish momentum across the crypto markets. Under the Biden administration, the SEC has led a crackdown on the industry, which resulted in a record high of 46 enforcement actions last year.
XRP Surges Over Gensler’s Exit News
However, it is now expected that Trump’s new administration will put far fewer resources into policing the industry. Furthermore, the president-elect is also reported to be considering appointing a presidential adviser focused solely on the crypto industry.
XRP is on its way to $2, as it surged around 25% in the past 24 hours, and looks set to keep moving forward fuelled by Gensler’s exit. The rise in the price of XRP comes as part of a broader rally in the crypto market, which currently sees Bitcoin hovering just below $100,000 level.
Potential XRP-ETF On The Horizon?
Gensler’s resignation has also sparked speculations that the SEC might drop its appeal or reach a favorable settlement with Ripple, easing the regulatory uncertainty that has suppressed the token for nearly five years.
Also, a favorable outcome of its legal case with the SEC might lead to the potential launch of XRP exchange-traded funds (ETFs). Notably, 21Shares, Canary Capital, and Bitwise have all filed applications for spot XRP ETFs.
This development if successful, would be enormous for Ripple after its longstanding legal issues within the US which will drive institutional interest in the token. Notably, analysts call for XRP to hit $2 soon before taking a run toward $5, fuelled by the likely positive news regarding its case with the SEC in the coming months.
