Daily Crypto Signals: Bitcoin and Ethereum Surge as Ripple's XRP Victory Reshapes Crypto Landscape

The cryptocurrency market saw significant gains today, with Bitcoin approaching $86,000 and Ethereum reclaiming the $2,000 level.

Cryptocurrency prices rose on Monday as the SEC dropped its multi-year enforcement action against Ripple and the Federal Reserve maintained its target range for interest rates.

By 08:45 ET (12:45 GMT), Bitcoin rose 2.4%, approaching the $86,000 mark, while Ethereum advanced 7.5% and crossed the $2,000 barrier.

The cryptocurrency sector saw some respite after the Securities and Exchange Commission decided to drop its case against Ripple (NYSE:RPL) and former chairman.

The regulator had sued the firm in December 2020 for allegedly engaging in an unregistered securities sale through the sale of its XRP token. A federal judge penalized Ripple $125 million—far less than the SEC’s $2 billion demand—and ruled that XRP itself is not a security for retail sales.

Announcing that the agency would be dropping its appeal against a ruling by a lower court, the SEC said in a statement that it planned to file a new case.

“In light of the Supreme Court’s decision in SEC v. Coinbase (NASDAQ:COIN), the agency has determined that it will no longer pursue its appeal of the lower court’s ruling in SEC v. Ripple,” the regulator said.

The case was a closely watched one in the cryptocurrency sector, with the outcome having implications for how other cryptocurrency firms are regulated.

The development came as the Fed kept its target range for the federal funds rate at 4.25% to 4.5%, as economists had anticipated. At the last meeting in March, the central bank decided to cut the pace of rate increases and signaled that it could begin reducing rates by the second half of 2024.

However, in June, the Fed decided to maintain the target range and signaled that it anticipates two reductions in 2025.

Moreover, the central bank announced its plan to gradually reduce the monthly redemption cap on Treasury securities from $25 billion to $5 billion and maintain the potential for reducing the monthly cap on agency mortgage-backed securities by $20 billion.

The move is part of the Fed’s broader effort to unwind the massive bond portfolio it amassed during the early stages of the coronavirus pandemic in an attempt to stabilize financial markets.

Later on Monday, Chair Jerome Powell will speak at the National Bureau of Economic Research’s 2024 Economic Outlook Conference. Any further comments on interest rates and inflation could offer further clues on the outlook for the cryptocurrency market.

Despite a recent correction to a four-month low of $76,600 on March 11, long-term holders—those who have held Bitcoin for at least 155 days—have seen a decline in selling pressure.

According to Glassnode data, these investors still retain a significant portion of their gains, suggesting a strong belief in the long-term direction of Bitcoin.

Furthermore, new Bitcoin whales—addresses holding at least 1,000 BTC with an average acquisition age of less than six months—have been diligently collecting BTC since November 2024, establishing themselves as major players in the market.

Since November 2024, these new whales have aggressively accumulated over 1 million BTC, highlighting their persistent interest in the world’s largest cryptocurrency.

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