On December 3, Ripple's (XRP) price reached a 6-year high, surging from $1.40 to $2.90 within a week. During this period, XRP's market capitalization surpassed both Solana (SOL) and Tether (USDT), securing XRP's position as the 3rd largest cryptocurrency by market cap for a short time. Since the elections, XRP's value has risen by over 400%.
Trump Policy Shift
Back in July 2024, Donald Trump spoke at the Bitcoin Conference in Nashville, where he announced his intention to create a strategic Bitcoin reserve while denouncing CBDCs. The Financial Times reported on November 18 that the Trump Media and Technology Group (DJT) is in negotiations to acquire Bakkt, a U.S.-based cryptocurrency exchange. On November 21, the head of the SEC, Gary Gensler, a staunch opponent of crypto firms, announced that he was stepping down from the SEC just weeks after Donald Trump got reelected. He is leaving the SEC on January 20, 2025, the same day Trump takes office. Under this control, the SEC has launched some 120 lawsuits against different firms with some people claiming that these litigations caused uncertainty and held the industry back for years. His departure was celebrated by both the incoming Trump Administration and investors alike. As per Elon Musk's recommendation, Paul Atkins will take charge of the SEC creating a much more crypto- and innovation-friendly environment.
On December 5, the price of Bitcoin surpassed the $100,000 mark exactly 3 months after Donald Trump announced that his administration will make the United States the "crypto capital of the planet." Since the presidential election, we've seen the stock of Coinbase (COIN) jump by 62%. Enthusiasm on main street and in the market is high, dubbed the "Trump trade."
In November Bitcoin ETFs had weekly net inflows reaching $4.7 billion. One of the largest inflows on record for newly-launched ETFs. To date, multiple XRP ETFs have been announced. Back in October Bitwise Asset Management filed an initial registration statement with the SEC, which was followed by Grayscale Investments, WisdomTree, and 21Shares.
60 Minutes Interview
Expectations for XRP were high as CBS News announced they interviewed Brad Garlinghouse for their Sunday 7 PM, December 8 episode. Some commentators noted that this coverage could mark the start of XRP's mass adoption. 60 Minutes ended up airing only a short segment of the 90-minute interview focusing on election donations made by the crypto industry, implying that their donations are the driving force behind Trump's crypto policy change. CBS adopted a traditionalist, anti-crypto stance, portraying Ripple and the broader crypto industry in a negative light while neglecting to mention the technological or utility aspects of digital assets. Their narrative painted crypto as risky and speculative, and perhaps borderline illegal, failing to acknowledge its transformative potential. Large crypto investors sold the news, and the price of XRP ended up dropping 12% with large caps and Bitcoin dipping 5%.