XRP and Solana Surge as Bitcoin and Ethereum Slide

The cryptocurrency market experienced notable volatility on Thursday, with some altcoins surging while most Top 100 digital assets swung between gains and losses in response to a mix of regulatory developments and shifting investor sentiment.

Bitcoin (BTC) is down 1% to $99,000 in the past 24 hours, while Ethereum (ETH) declined 1.5% to $3,300. In contrast, XRP surged by 15% to $3.38, and Solana (SOL) rose by 8% to $214, flipping BNB to become the fifth-largest cryptocurrency by market capitalization.

The total crypto market cap is flat at $3.67 trillion, according to CoinGecko. Bitcoin exchange-traded funds (ETFs) also bounced back after four days of outflows, recording $755 million in inflows on Jan. 15.

In the past 24 hours, 110,535 traders were liquidated, with total liquidations coming in at $346 million, according to CoinGlass. BTC accounted for around $80 million in liquidations, while ETH recorded $66 million. XRP experienced around $42 million in liquidations, while altcoins suffered $37 million.

​​"Markets typically see heightened volatility around major political events,” Jag Kooner, Head of Derivatives at Bitfinex, told The Defiant. “President-elect Donald Trump’s upcoming inauguration could spark short-term price swings for Bitcoin, with volatility possibly extending into the following weeks, depending on policy announcements and market reactions.”

Kooner added that Bitcoin’s correlation with the NASDAQ 100 has reached a two-year high, making it particularly sensitive to this week's CPI data, which signaled easing inflation.

“This is in line with our Q1 outlook of increasing macro dependence and TradFi correlation for Bitcoin,” Kooner said. “We expect Bitcoin and crypto price movements to act as a faster beta to the evolving macro backdrop and price in the number of rate cuts we could see in 2025 much faster than other risk assets."

XRP Approaches All-time High

XRP, the native cryptocurrency of Ripple's payment network, has rocketed 15% in the past 24 hours and 45% over the last week.

Experts attribute the surge to several reasons, including positive speculation surrounding Ripple's ongoing legal battle with the Securities and Exchange Commission (SEC).

In 2020, the SEC sued Ripple for offering unregistered securities in the form of XRP. In August 2024, a court ruling fined Ripple $125 million, significantly less than the $2 billion sought by the SEC, which appealed the decision last October.

The SEC met a deadline to file its opening brief in its appeal by Wednesday. “The SEC’s appeal brief is just a rehash of arguments that have already failed,” Ripple’s Chief Legal Officer, Stuart Alderoty, wrote in a post on X late Wednesday. “We’ll respond formally in due time.”