XRP surged 17% within 24 hours, outperforming Bitcoin and other major cryptocurrencies. This growth stems from a more favorable regulatory environment in the U.S., which is rejuvenating interest in assets previously hindered by SEC actions.

In early trading hours, XRP crossed 82 cents, marking a 50% increase over seven days—the highest since June 2023. The boost coincided with 18 U.S. states filing suit against the SEC, with claims of unconstitutional overreach by the commission.

Traders are speculating that a potential resurgence of a Trump administration could favor tokens linked to U.S.-based firms, such as Ripple Labs. Meanwhile, Bitcoin and other major cryptocurrencies retraced as much as 4% amid profit-taking following days of gains.

The downturn was prompted by hawkish remarks from Fed Chair Jerome Powell, who indicated that the economy does not warrant immediate rate cuts. Current market predictions suggest a 66% probability of a 25 basis point reduction in the upcoming December FOMC meeting, a decrease from 83% prior.

Bitcoin's price dropped from $93,000 to $88,000, resulting in over $120 million in liquidations for leveraged bets. Meanwhile, Ethereum (ETH) and Solana saw declines of around 3.5%, with Dogecoin (DOGE) and Shiba Inu (SHIB) facing even steeper losses of up to 5%.

Despite the fluctuations, sentiment remains positive about Bitcoin's future with some traders predicting targets as high as $120,000, buoyed by optimism related to the cryptocurrency's ongoing rally coinciding with political shifts.