Why XRP and Other Altcoins Are Trading Higher Today

11/07/2024 01:40
Why XRP and Other Altcoins Are Trading Higher Today

Crypto has been considered a major Trump trade for weeks now.

Cryptocurrencies and altcoins surged higher today after Donald Trump won last night's Presidential election and is now set to become the 47th President of the United States. Crypto had been a major Trump trade leading up to the election.

The price of XRP (CRYPTO: XRP) traded 4% higher as of noon today. Meanwhile, the price of Shiba Inu (CRYPTO: SHIB) and Litecoin (CRYPTO: LTC) traded roughly 5% and 6% higher, respectively.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

Trump voiced support for crypto during his campaign and pledged to enact policies that would favor the sector and clarify regulatory gray areas.

"The themes around the Trump trade for crypto are deregulation, potential tax cuts for an asset that is both held long term but also day traded, less dependency on parts of government like financial institutions and the Fed -- or at least an alternative for decentralized currency -- and overall support of risk assets and the growth of crypto ... is really what's making it grow," said Defiance ETFs CEO Sylvia Jablonski, according to CNBC.

Trump promised to push for a change in leadership atop the Securities and Exchange Commission (SEC). Current Chair Gary Gensler has been a thorn in the side of crypto stakeholders, pushing for the SEC to have greater regulatory jurisdiction over cryptocurrencies.

While at the SEC, Gensler also published the Staff Accounting Bulletin (SAB) 121, directing banks and other financial institutions that held crypto assets for their customers as on-balance-sheet liabilities. Assets held in custodian accounts are normally accounted for as off-balance-sheet assets. Listing them as on-balance-sheet liabilities increases capital and liquidity requirements for banks and, therefore, makes them less likely to offer crypto custodian services.

Before the election, Standard Chartered analyst Geoff Kendrick predicted a Republican sweep could send the price of Bitcoin, a bellwether for the industry, to $125,000 by the end of the year. One of the catalysts Kendrick foresees is the removal of SAB-121. He also predicted more flows into spot Bitcoin exchange-traded funds (ETFs) and a higher inflationary environment, which Bitcoin would benefit from because it is considered a hedge against inflation.

The removal or resignation of Gensler is also likely to benefit XRP. The SEC previously sued Ripple Labs and its founders for not properly registering XRP as a security when it sold more than $1.3 billion of the token in 2013. The case has been closely watched by crypto stakeholders because it could have set a precedent over the SEC's ability to regulate many cryptocurrencies as securities.

The SEC lost the case but then recently appealed parts of the court's decision, which has weighed on the price of XRP lately. The case might lose some of its luster if new officials take over at the SEC.

The price of Bitcoin has already hit new highs, and I would expect the sector to continue to benefit from a Trump administration that seems supportive of growing the industry and making the U.S. a major crypto hub.

While I think most cryptocurrencies will benefit from this move, I am more interested in XRP and Litecoin and less interested in Shiba Inu.

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $22,469!*

  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,271!*

  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $411,970!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of November 4, 2024

Bram Berkowitz has positions in Bitcoin, Litecoin, and XRP. The Motley Fool has positions in and recommends Bitcoin and XRP. The Motley Fool recommends Standard Chartered Plc. The Motley Fool has a disclosure policy.

Why XRP and Other Altcoins Are Trading Higher Today was originally published by The Motley Fool

Read more --->