The crypto market made a strong comeback in a recovery following lower than expected U.S. inflation readings that eased investors’ worries. Bitcoin crossed the $84,000 barrier, and XRP topped $2.25, with a 2.6% increase in global market capitalization to $2.76 trillion.
Why Is the Crypto Market Pumping?
The U.S. Consumer Price Index (CPI) rose 2.8% year-over-year, just short of the predicted 2.9%, suggesting that inflation is maybe slowing down. Monthly inflation also increased just 0.2%, less than expected.
The news eased fears of aggressive Federal Reserve policies, triggering a wave of risk asset euphoria in such assets as stocks and cryptocurrencies.
Bitcoin’s recent price hike follows after the correction of its March peak price of $95,000 after Trump’s government’s proposed establishment of a strategic Bitcoin reserve.
The token dipped to $77,000 but has made a comeback and has tested resistance at $90,000. Penetrating through this support level would push BTC to the price range of $95,000–$100,000, with $80,000 still being very firm support.
XRP’s Rally and the SEC Lawsuit Settlement
XRP increased by 6% in 24 hours, crossing $2.25 as legal clarity improved. The SEC will close the case against Ripple, and a finalization of negotiations is underway. Ripple’s lawyers are negotiating fewer penalties with conditions like a $125M fine and the removal of bans on institutional sales.
They believe that if other crypto firms are being cleared, Ripple should not be punished. The non-precedential nature of the case is keeping the ruling on hold, but a decision is imminent. The most critical resistance levels of XRP are $2.8, $3.5, and $5, and the support lies at $2.
With cooling inflation, the sentiment remains bullish in the markets but there’s plenty of volatility. If BTC is able to break $90K, then the target might be $100K.
Macro uncertainty created by Fed policy and Trump’s tariffs, though, could have some influence on direction. Traders will have to watch Fed announcements and major points of resistance as the next behemoth moves set in.
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