XRP Leads Market Rebound, BTC Tops $97k

TL;DR

• XRP has outperformed other major cryptocurrencies, up 12% in the last 24 hours.

• BTC is trading above $97k as traders await key inflation data.

XRP Surges 12%, Market Cap Hits $163B

XRP, Ripple’s native token, is the best performer among the top 10 cryptocurrencies by market cap. The coin is up 12.6% in the last 24 hours and now trades at $2.85 per coin. There is no major catalyst behind this latest rally as the broader crypto market recovers from Monday’s dip.

Thanks to XRP’s latest rally, its market cap has now crossed the $163 billion mark for the first time in nearly four years. XRP has also surpassed Tether (USDT) to become the third-largest cryptocurrency by market cap.

The rally comes as Bitcoin also recovered nicely and now trades above $97k. Bitcoin’s price stands at $97,415, up 2.5% in the last 24 hours. The positive performance also comes as traders eyed the latest batch of U.S. inflation data, with more to come today.

Investors have already reduced expectations for lower interest rates in the U.S. this year amidst recent hot U.S. economic data releases. The Consumer Price Index (CPI) report set to come out today could result in another round of volatility to the markets and provide further clues for traders into the Fed’s policy trajectory for 2025. 

While commenting on the volatile nature of the market, Ruslan Lienkha, chief of markets, YouHodler, told Cryptowisser in an email that,

“The financial markets are in a consolidation phase, awaiting clarity on the new U.S. administration's initial actions and policy direction following the President's inauguration. This phase of uncertainty is expected to result in a neutral-to-negative flat market over the next several weeks, characterized by limited net capital inflows or outflows.” 

Stellar’s XLM token’s price movement has mirrored that of XRP in recent months, and yesterday wasn’t different. XLM is up 13% in the last 24 hours, outperforming the broader crypto market.

Thanks to the ongoing rally, the total cryptocurrency market cap now stands at $3.39 trillion. In the coming months, other major cryptocurrencies could mirror Bitcoin’s price action. Lienkha added that,

“Major altcoins, including Ethereum, Solana, and XRP, will likely mirror Bitcoin's price trajectory but with heightened volatility and more pronounced price swings. Ethereum may be more vulnerable to potential negative sentiment, as it showed limited enthusiasm during the recent bullish rally, raising questions about its resilience in a risk-off environment. Meanwhile, XRP and SOL are expected to see broader adoption of their respective blockchains, with use cases expanding significantly through 2025. However, increased utility and adoption do not necessarily translate into immediate price growth, as broader market conditions and investor sentiment will play a decisive role.”