Bitcoin is on the verge of hitting the remarkable $100,000 milestone, with its latest achievement recorded at $99,500. This development has once again underscored Bitcoin’s relentless upward trajectory. Despite Bitcoin’s impressive performance, many altcoins have surpassed its growth, indicating a potential shift in investor interest towards smaller and riskier tokens as Bitcoin’s movement stabilizes.
Breaking the $100,000 Barrier: What to Expect?
The psychological and technical $100,000 level remains a crucial point of resistance. At this juncture, many investors might decide to realize profits from their investments. Nevertheless, projections suggest a possibility for Bitcoin to ascend to $115,000 by the festive season, driven by an expanding stablecoin supply, increased inflows into Exchange-Traded Funds (ETFs), and a bullish stance on options positioning, particularly concerning BlackRock’s spot Bitcoin ETF (IBIT), according to insights from 10x Research.
Altcoins Rally Amid Regulatory Shifts
In tandem with Bitcoin’s growth, altcoins have been experiencing a significant rally. The imminent regulatory changes seem to favor the crypto market, with anticipation of more favorable investment product approvals for smaller tokens and the allowance of staking for ETFs. Notably, XRP spearheaded the rally, witnessing a substantial 33% increase within 24 hours, while Cardano’s ADA registered a rise of over 15%. Solana’s native token (SOL) reached an unprecedented peak above $260.
XRP Surges Following Gensler’s Exit
The departure of Gary Gensler from the US Securities and Exchange Commission (SEC) on January 20 has infused a wave of optimism into the crypto markets. Under the previous administration, the SEC’s stringent oversight resulted in a record 46 enforcement actions last year. However, with the anticipated changes in leadership, there’s a growing expectation that resources dedicated to industry regulation might be scaled back. The president-elect is purportedly considering the appointment of a presidential advisor focused exclusively on the crypto sector.
XRP has embarked on a strong upward trajectory, edging closer to the $2 mark. The token surged by approximately 25% in the last 24 hours, fueled by the momentum following Gensler’s departure. This upswing coincides with Bitcoin’s position just beneath the $100,000 threshold, reflecting a broader rally in the crypto markets.
Prospects of an XRP-ETF
Gensler’s resignation has also sparked conversations around the possibility of the SEC either withdrawing its appeal or reaching a favorable settlement with Ripple, potentially alleviating the regulatory uncertainties that have loomed over XRP for nearly half a decade. A positive resolution of its legal tussle with the SEC could pave the way for the launch of XRP exchange-traded funds (ETFs). Several firms, including 21Shares, Canary Capital, and Bitwise, have already submitted applications for spot XRP ETFs.
Should this development materialize, it would mark a significant turning point for Ripple, potentially attracting substantial institutional interest in the token. Analysts project XRP to hit the $2 mark in the near term, with possibilities of surging towards $5, fueled by forthcoming positive announcements regarding its legal case with the SEC.
