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Bitcoin reclaimed the $70,000 level on the morning of the 21st for the first time since early June, trading around $73,000. XRP spiked more than 18% at one point, reaching the $1.30 range. The rally was driven by the U.S. Treasury Department’s announcement of expanded long-term bond buyback limits, which pushed U.S. long-term yields lower and lifted U.S. equities, drawing capital into the broader crypto asset market. Ethereum also recovered to the $2,200 level for the first time since mid-May. Regarding XRP, some market participants noted that a $275 million corporate bond issuance by a <a href="https://xpertsstudio.com/ripple-sec-lawsuit-and-the-case-for-crypto-rules/” title=”Ripple SEC Lawsuit and the Case for Crypto Rules”>Ripple subsidiary bolstered institutional investor confidence, though others cautioned that the move largely reflects catch-up buying given the absence of XRP-specific catalysts.
Key Elements
The crypto asset (virtual currency) market saw Bitcoin (BTC) reclaim the $70,000 level on the morning of the 21st for the first time since early June. As of 9:20 a.m. that day, Bitcoin was trading in the mid-¥11 million range (up 6.4% over the past 24 hours), equivalent to approximately $69,000. Ethereum (ETH) was around ¥370,000 (up 3.8%), approximately $2,300, while XRP was in the low ¥200 range (up 15.1%).
Major crypto assets broadly pushed higher on the previous day, the 20th. Bitcoin traded largely flat during the day but gained upward momentum from the evening, reclaiming the $70,000 level for the first time since early June. By the morning of the 21st, it had climbed to around $73,000. Ethereum also recovered to the $2,200 level for the first time since mid-May, maintaining firm price action.
The standout move was XRP’s sharp surge. After trading in the $1.10 range on the evening of the 20th, XRP spiked to the $1.30 range in the early hours of the 21st, briefly posting gains of more than 18%. Given that XRP’s recovery had lagged behind Bitcoin and Ethereum, the move appeared to reflect concentrated buying driven by catch-up sentiment.
Expanded U.S. Treasury Buybacks Lift the Broader Market
The rally was underpinned by the U.S. Treasury Department’s announcement that it would more than double the per-auction cap on long-term bond buybacks. The news pushed U.S. long-term yields lower and lifted U.S. equities, with the risk-on sentiment spilling over into the crypto asset market and prompting capital inflows.
Ethereum was a particular beneficiary, at one point rising nearly 20% from its level on the evening of the 19th. Amid broad-based inflows into crypto assets, some market observers noted that whale (large investor) buying was also detected in XRP.
Ripple Subsidiary’s Bond Issuance Bolsters Institutional Confidence
On XRP specifically, a Ripple subsidiary completed a private placement of $275 million (approximately ¥44 billion) in senior unsecured notes on the 18th, which may have contributed to improved investor sentiment. Market participants suggested that the bond issuance had strengthened institutional investor confidence in Ripple.
That said, given the sharp rally occurred in the absence of any XRP-specific new catalysts, some caution remains regarding the sustainability of the advance. Some analysts argue that the move is largely a catch-up correction, and XRP could continue to see elevated volatility as it tracks the price action of Bitcoin and Ethereum going forward.
Market participants are focused on the trajectory of U.S. long-term yields and the correlated movement of U.S. equities. Whether the Treasury’s expanded buyback policy establishes a sustained decline in yields will likely determine the near-term direction of the crypto asset market.
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Source: finance.biggo.com