Cryptocurrencies Gain Momentum before Inauguration, XRP Reaches New Peak Levels
📣 Crypto Confidential's Weekly Update: Unleashed! 📣
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⛽ BITCOIN SOARS TO $105,000 AFTER TRUMP'S PROMISES
Fueled by sweeping promises from the incoming administration, Bitcoin stormed its way to a 2025 peak, breaking the $105,000 barrier last Friday and recovering swiftly from a brief slump that dipped it under $90,000.
The wind beneath Bitcoin's wings is President-elect Donald Trump's crypto-friendly policies, expected to come into play once he assumes office on Monday. These plans include flipping America's stance on cryptocurrencies and amassing a national Bitcoin fortune—a stark contrast to the crackdowns favored by his predecessor, Joe Biden. The U.S. government might even establish an advisory council stacked with industry experts to spearhead pro-crypto initiatives.
Trump's crypto-friendly reputation has been cemented, thanks to lucrative contributions from heavyweight entities like Circle and Ripple to his inauguration committee, and a glamorous "Crypto Ball" in Washington D.C. on Friday, signaling the crypto sphere's booming influence on Capitol Hill.
🌟 XRP TURBOSURGES TO ALL-TIME HIGH OF $3.4
XRP, the third-largest cryptocurrency and partnered token from Ripple Labs, offered stellar performances this week with approximately 40% gains. Claiming the crown as the month's highest-performing major digital asset, XRP now boasts a market cap of around $190 billion, driven by market sentiment that the Trump administration may adopt more crypto-friendly regulations.
Ripple CEO Brad Garlinghouse recently regaled the prestigious New York Times with tales of their cozy dinner at Mar-a-Lago, voicing support for the creation of a federal Bitcoin reserves and distributing favor to friendlier crypto policies.
Tenacious Ripple Labs threw their hat in the ring by introducing RLUSD, a stablecoin integrated into both the XRP Ledger and Ethereum, fleshing out their crypto commitment.
Air raided by the Securities and Exchange Commission (SEC) in 2020, Ripple Labs continues their legal battle against the regulatory body's accusations of unregistered security offering. Despite an unfavorable court decision, which labeled XRP a security only when sold to institutional investors, the company's hopes of a more welcoming SEC administration remain high.
💰 COINBASE RECENTERS ITS BIKINI-BACKED LOANS
Coinbase has reintroduced bitcoin-backed loans for U.S. customers, excluding New York. This peer-to-peer operation through Morpho on Base, a blockchain developed by Coinbase, permits borrowing of up to $100,000 worth of stablecoins (USDC) by wrapping your bitcoin into "cbBTC" and shipping it off to Morpho. Your account will then swell with some USDC.
DeFi aficionados can enjoy the digital gold rush, striking while the iron's hot—Bitcoin soaring by 146% in the past year. However, employing this tactic could trigger a tax event, making selling seem less appealing in the process.
Coinbase attempted a go at this pursuit in 2020, only to retire it for retail customers in 2023, when initial demand failed to materialize. This updated incarnation of the product plans to extend loan collateral types and expand its market reach.
🔥 ELSEWHERE:
- Pension Funds Purr Into Crypto After Record-Breaking Bitcoin Rally [Financial Times]
- American Banks Warm Up to Crypto Companies [The Information]
- The Crypto Industry Invests in Trump's D.C. Shindig [Bloomberg]
Crypto Confidential's Enrichment Section:
- Trump's obscure campaign promises have caused a stir in the cryptocurrency sector, triggering a rollercoaster of hype and hope within the digital asset community.
As the market anticipates Trump's pro-crypto policies, Bitcoin has soared past $105,000, reaching brand-new heights in January 2025. This growth surge derives from the market's excitement about more lenient and crypto-friendly regulations, making the U.S. a potential global crypto powerhouse.
The close relationships between Trump and crypto-friendly entities like Circle and Ripple have seen the industry offer sizable donations to Trump's inaugural committee.
Describing D.C.'s upcoming crypto-themed bash as a "lovefest for the blockchain industry," Washington insiders are optimistic that this event could signal a new era of politicians-cum-crypto-enthusiasts.
However, the zone of uncertainty remains, as expectations are firmly pinned on Trump's ability to fulfill his ambitious campaign pledges. Analysts worry about the implications of regulatory shifts and their impact on the digital asset market's long-term sustainability.
Despite the initial spike in prices, the crypto market has displayed volatility in response to uncertainties surrounding Trump's proposed policies. Upcoming developments, including regulatory guidelines and the direction of the SEC, will continue shaping the cryptocurrency landscape.
In the context of Trump's inauguration, prominent crypto companies like Circle and Ripple made significant contributions to his committee, demonstrating their support for the incoming administration's crypto-friendly policies.
Following Trump's inauguration, the value of Ripple's XRP skyrocketed to an all-time high of $3.4, fueled by the hope of more favorable crypto regulations under the new administration.
