- XRP trades at $2.37 showing resilience after recovering from a dip to $1.90
- Expectations of a 0.25% interest rate cut by the U.S. Federal Reserve could boost XRP and other altcoins
- Investors watching the upcoming FOMC meeting and Presidential inauguration for potential market impacts
As we enter the final moments of 2024, most digital assets have lost their forward momentum seen in the previous month. However, there is an argument to be made that the market is far from growing stagnant—and that investors may be building up strength for major events in the next 30-day period that could revamp the current state of the crypto sector.
One of the fastest-growing cryptocurrencies both in terms of value and popularity, Ripple Labs’ XRP is currently trading at $2.37 according to CoinMarketCap. The story for XRP over the last 2 weeks has been the asset fighting nail and tooth to retain the $2.40 margin.
In truth, XRP has shown incredibly resilient as investors managed to recover the $2.40 level even after a dip to $1.90. As the currency sees a minor retraction, investors now eye the upcoming FOMC meeting on December 17-18 as the most likely event that could cause a new surge in value.
Expectations are that the U.S. Federal Reserve will cut another 0.25% off of the Nation’s interest rates. Historically, when borrowing costs are cut, risky markets like crypto and stock tend to enjoy a significant surge in value due to easier access to capital.
Looking forward, the Presidential inauguration ceremony is the most likely event to cause another market boost. Similar to his November 5th election win, Trump taking office is likely to cause market optimism in the crypto sector, especially if the soon-to-be President mentions crypto assets in his inaugural speech.
Altcoins On The Decline?
Bitcoin dominance, the percentage of the total cryptocurrency market capitalization that is made of Bitcoin, went up over the past week. Since December 7 BTC-D went up from 55,08% to today’s 57.65%.
This movement put a halt to expectations of a new altcoin season emerging. Ethereum, Sui, and Chainlink are the only profitable altcoins on a 24-hour period. In that same timeframe projects like Shiba Inu, Avalanche, and Toncoin saw decreases of over 3.6% in value throughout the day.
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