Bitcoin, Ethereum, XRP & Solana: What's Driving Crypto Markets?
Cryptocurrencies experienced a positive price surge over the weekend, with leading assets showing gains. This upward trend is fueled by factors such as the GENIUS Act becoming law and growing expectations for upcoming interest rate cuts.
Crypto Prices Increase Amidst Transaction Volume Decline
According to CoinMarketCap data, the cryptocurrency market is showing strong performance, with the overall market capitalization reaching $3.86 trillion, a nearly 2% increase over the last day.
Bitcoin, the leading cryptocurrency, is trading near $118,000, gaining 1% in the past 24 hours. This recovery follows the release of June’s US CPI data, which initially caused prices to drop. Currently, Bitcoin is only 4.32% below its all-time high, with investors watching closely for a new peak.
Ethereum also saw a 2% increase over the last day, capping off a robust week. The seven-day chart shows a 22% surge, pushing the price of the largest altcoin above $3,500.
XRP recorded solid daily gains after reaching an all-time high earlier in the week. Technical and on-chain indicators suggest a continued rally for XRP, with bullish investors targeting a price surge to $17. Solana (SOL) has gained double-digits over the past seven days; however, SOL's price only increased by 0.8%, indicating reduced momentum.
Other cryptocurrencies such as Chainlink, Avalanche, and Litecoin have also seen gains, with increases of nearly 4%, 5%, and 7.65% respectively. Interestingly, the daily cryptocurrency trading volume is down by 46% at $135 billion, which contrasts with the positive price performance.
Regulatory Developments and Institutional Demand Boost Crypto Prices
The recent price surge is primarily attributed to regulatory developments in the US.
The GENIUS Act becoming law triggered a rally in crypto prices, with assets continuing to benefit from this momentum. Furthermore, the House's approval of the CLARITY Act and the Anti-CBDC Surveillance State Act has also contributed to the upward price movement.
Anticipation of Federal Reserve rate cuts, driven by new economic data, is another factor. Federal Reserve President Mary Daly has advocated for two interest rate cuts, adding to the positive sentiment as Fed Chair Jerome Powell faces increased political pressure.
Growing institutional interest is also playing a significant role, with Bitcoin and Ethereum treasury companies actively accumulating assets. Increased activity from altcoin treasury companies and positive ETF reports for XRP and Ethereum are further fueling the price surge.
Disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.