The entire cryptocurrency market noticed a substantial upsurge, XRP and Bitcoin spearheading the rally that was purely driven by a myriad of reasons: optimism concerning a possible settlement in Ripple’s enduring tussle with the SEC, growing glee towards the prospect of a US XRP-spot ETF, and a short-term calm in the long-drawn trade conflict between the US and China.
A Shift in Crypto Regulation: Signals of Change from Atkins
The news surrounding the cryptocurrency industry has become increasingly positive with the appointment of Paul Atkins as the new chair of the Securities and Exchange Commission (SEC). As Crypto America host and journalist Eleanor Terrett covered, “The SEC Chair Paul Atkins intends to safeguard investors from fraud, keep politics out of securities legislation, and establish a solid regulatory framework for digital assets. The SEC under his leadership will ensure that the United States remains the most secure investment destination globally. Also, Atkins mentioned US Treasury Secretary Scott Bessent administered the oath in his second swearing-in ceremony today.” Many took this comment to mean that the SEC is becoming more flexible and less hostile toward cryptos.
Markets seem to believe that Chair Atkins’ administration may finally resolve the Ripple case and settle based on Judge Analisa Torres’ ruling. Such a settlement, along with the most probable scenario of the SEC withdrawing its appeal, is expected to expedite the approval process for US XRP-spot ETFs, which analysts predict could push XRP to unspeakable price heights. Eric Balchunas, a Bloomberg Intelligence Senior ETF Analyst, remarked on the pending XRP-spot ETFs along with other crypto-spot ETFs still awaiting approval stating it could mean a “wild year” for ETF approvals.
Bitcoin Surges Past $90,000: Trade War Thaw Boosts Risk Appetite
Further fueling the positive sentiment in the crypto ecosystem, Bitcoin (BTC) has breached the significant milestone of $90,000 for the very first time since March 7th. The driving force behind Bitcoin’s price increase can be linked to a reported thawing in the trade war between the US and China which has raised demand for risk assets such as Bitcoin and cryptocurrency as a whole.
Speculation suggests President Trump may change his rigid stance on China, indicating a possible softening in trade relations. Coupled with Secretary of the Treasury Scott Bessent’s comments concerning the trade war’s untenable trajectory, market sentiment received a boost. Bitcoin, which dropped from a staggering January valuation of $109,312 to $74,394 in March amidst tariff concerns, has started recovering on renewed speculation regarding a trade resolution.
ETF Inflows Reflect Bullish Sentiment: Institutional Interest Returns
Renewed optimism for the market is undoubtedly optimistic with inflows into US Spot Bitcoin ETFs. On April 22, Farside Investors reported significant net inflows to key Bitcoin ETFs such as ARK 21Shares Bitcoin ETF (ARKB), Fidelity Wise Origin Bitcoin Fund (FBTC), Bitwise Bitcoin ETF (BITB), and combined inflows to Grayscale Bitcoin Trust (GBTC) and Grayscale Bitcoin Mini Trust (BTC). Net inflows from US BTC-spot ETF market excluding BlackRock’s iShares Bitcoin Trust (IBIT) surpassed 719.2 million dollars, following previous days of strong inflow. Determining short and long term necessities for institutional demand further outlines shifting confidence in Bitcoin.
Reshaping this positive sentiment is Trump’s calming remarks about the Federal Reserve’s perceived independence during his presidency.
Restraining the markets and further encouraging risk appetites was his statement that he had “no intention” to fire Fed chair Powell.
The Path Ahead: Policy Framework of Ripple and Bitcoin Developments
As for XRP and Bitcoin, their trajectories will be primarily depsed on regulatory clarity and the macroeconomic zeitgeist. The Ripple case dispute being settled and the approval progress for the XRP-spot ETF remain crucial as catalysts for XRP that may push it towards its all-time high. Also, Bitcoins’ ability to maintain its breakout above $90,000 and set its sights on $100,000 would, among other things, need a dovish Fed, further easing trade tensions, and strong BTC-spot ETF inflows into the US. While the Strait of Hormoz is still sensitive to macro winds and geopolitical currents, the optimism of the recent blend of amicable regulatory developments and relaxed trade hostilities is palpable.
