XRP Price Climbs Amid ETF Hopes; Bitcoin Shows Resilience with Fed Rate Trends
XRP’s price increased significantly after the SEC acknowledged multiple XRP-spot ETF applications, which could lead to greater demand. Nate Geraci from ETF Store commented on the SEC’s surprise acceptance amidst ongoing litigation. Meanwhile, Bitcoin experienced a rally influenced by changing expectations regarding Fed interest rates. Investors are advised to stay aware of upcoming developments that may affect the cryptocurrency market.
On February 14, progress regarding a US XRP-spot ETF gained momentum as the SEC acknowledged the 21Shares’ 19b-4 application, which initiates the review process for another XRP-spot ETF. The SEC’s acceptance of Grayscale’s XRP-spot ETF application indicates a potentially positive shift in market sentiment towards XRP demand. Recent developments suggest increasing optimism among investors.
Nate Geraci, President of ETF Store, expressed his astonishment at the limited discourse surrounding the SEC’s decision, stating, “Shocked more people aren’t talking about SEC accepting XRP ETF filing… They have open litigation w/ Ripple. Meanwhile, they just acknowledged filing of ETF holding asset in dispute (they easily could have rejected this filing). Enormous message IMO.” He noted that the SEC’s actions could signal a withdrawal of its appeal in the ongoing Ripple case.
Market participants are currently awaiting the SEC’s responses to additional 19b-4 applications submitted by Bitwise, Canary Funds, and WisdomTree. Should the SEC withdraw its appeal and approve an XRP-spot ETF, the demand for XRP is expected to surge, especially following Ripple’s intensified efforts in the US market since the July 2023 ruling on Programmatic Sales of XRP.
Moreover, potential integration with SWIFT could alter XRP’s supply-demand dynamics and attract institutional investors. Currently, XRP has not been incorporated into SWIFT’s infrastructure, and such integration could substantially heighten institutional interest in this cryptocurrency.
On the same day, XRP experienced a significant increase of 6.87%, recovering from a 3.54% rise the previous day, closing at $2.7377. While XRP outperformed the overall market, which saw a 1.47% gain, it remains below the recent high of $3.3999 observed on January 16, and the record peak of $3.5505 in 2018. The ongoing SEC proceedings likely contribute to investor caution.
Besides developments related to XRP, US economic indicators have impacted demand for Bitcoin (BTC). Retail sales in the US declined by 0.9% in January, reverting a previous increase. This downturn in consumer spending may support a more lenient stance from the Federal Reserve regarding interest rates.
Furthermore, recent producer price data indicates a weaker demand environment, suggesting potential price reductions by producers. The CME FedWatch Tool reflects these expectations, with a decrease in the likelihood of the Fed maintaining the current interest rate in June.
On February 14, changing sentiment around the Fed rate outlook led to increased inflows into the US BTC-spot ETF market, which reported $48.3 million in total net inflows, effectively reversing a prior four-day outflow trend. BTC gained 0.93%, recovering part of a previous loss, closing at $97,567, and reaching a peak of $98,929 before scaling back.
Investors should remain vigilant regarding key events that may shape institutional crypto adoption and broader market dynamics. Continually updating oneself with expert analyses on these factors will provide valuable insights into potential future trends in the cryptocurrency space.
In summary, the recent developments regarding XRP-spot ETF approvals signify a pivotal moment for the cryptocurrency market, potentially enhancing XRP demand and investor optimism. The ongoing interaction with regulatory bodies and economic indicators will be crucial in shaping the market’s trajectory. Moreover, maintaining awareness of shifting trends and expert insights will be essential for investors navigating the evolving landscape of cryptocurrencies.
Original Source: www.fxempire.com
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