At the time of writing, the price of XRP is going up through the roof and is up 3.97 percent for the past 24 hours. Together with Solana (+4.32 percent), it is the best performing coin of the top 10. The rest are all trading sideways or in the red.
The question, of course, is why XRP is doing so well right now.
What is the reason for the increase?
The reason for the increase in XRP seems to be in a so-called Digital Asset Market Structure Proposal from the United States that was presented on Friday by a group of Republican politicians who want clarity for the crypto sector when it comes to laws and regulations.
Pro-XRP attorney Jeremy Hogan immediately tweeted that the Republican bill could also count as an “XRP token holder protection bill.”
The biggest problem for XRP at the moment is that there is no clear law and regulation about the classification of tokens within the US system. That is also the main reason for the lawsuit between Ripple and the Securities and Exchange Commission (SEC) that has been going on for some time now.
Based on the optimism surrounding this law, XRP has risen sharply today, but it is also up more than 11 percent for the past seven days. Those are numbers that you can certainly come up with on a weekly basis.
Waiting for the Federal Reserve
As far as the slightly longer term is concerned, we have to wait for the Federal Reserve. The US Federal Reserve has scheduled another interest rate meeting on June 14. That could well be the moment when they announce an interest rate pause and the market can take a breather after a good year of aggressive interest rate hikes.
That will not immediately be the signal for a new bull market, but it is certainly positive that this will put an end to interest rate hikes. The further course of 2023 is likely to depend largely on macroeconomic conditions.
Will the US economy manage to avoid a recession and will inflation return to the desired 2.0 percent? That is a good sign for the market. Is everything going the wrong way? Then 2023 could very well be a year of significant declines.
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