The crypto market is seeing solid gains this week, with most major assets in the green. Bitcoin (BTC) is up 4%, Ethereum (ETH) has gained 9%, and Binance Coin (BNB) is surging by 25%. But the biggest mover is XRP, fueled by optimism around Ripple’s upcoming RLUSD stablecoin and speculation about regulatory shifts.
SEC Chair Gary Gensler to Resign
SEC Chair Gary Gensler has announced his resignation, effective January 20, 2025—the same day a potentially crypto-friendly Trump administration takes over. Under Gensler, the SEC cracked down on crypto firms, with Ripple facing some of the toughest scrutiny. His departure is raising hopes for a shift in regulatory tone, which could benefit XRP and the broader crypto market.
XRP ETFs & RLUSD Stablecoin in Focus
The possibility of regulatory clarity is also driving interest in XRP-based ETFs, with firms like WisdomTree and Bitwise seeking SEC approval. Meanwhile, Ripple’s proposed RLUSD stablecoin is reportedly close to getting the green light from the New York Department of Financial Services (NYDFS). Expected to launch as soon as December 4, RLUSD would be backed by U.S. dollar deposits, government bonds, and cash equivalents. If approved, it could enhance Ripple’s On-Demand Liquidity (ODL) platform, challenging traditional payment networks like SWIFT.
Tron’s Surge Raises Concerns Over Leverage
While the broader market is rallying, Tron (TRX) is drawing attention for different reasons. TRX has seen a major price jump, driven in part by its founder, Justin Sun, who recently became the majority investor in Trump’s crypto venture, World Liberty Financial (WLF). He now holds over 55% of WLF tokens, worth around $30 million.
However, Tron’s price action appears heavily driven by leverage. Open interest (OI) in TRX futures has skyrocketed from $156 million to $436 million, accompanied by high funding rates—suggesting the rally may be fueled by aggressive speculation rather than organic demand. If history is any guide, such leverage-driven pumps can lead to sharp corrections, like Tron’s 75% crash in April 2021.
BlackRock’s Bitcoin ETF Hits 500,000 BTC AUM
BlackRock’s IBIT Spot Bitcoin ETF has crossed a major milestone, now holding over 500,000 BTC—worth about $48 billion. Since launching in January, it has quickly become a dominant force in the crypto market, with its holdings now accounting for 2.38% of Bitcoin’s total 21-million supply. This surge reflects growing institutional demand for regulated Bitcoin investment products.
U.S. Government Moves $1.9B in Bitcoin to Coinbase
A government-controlled crypto wallet recently transferred 20,000 BTC (worth $1.9 billion) to Coinbase Prime, per Arkham Intelligence. These funds originate from Bitcoin seized in the Silk Road case.
The transaction started with a small test transfer of 0.001 BTC ($97), followed by the bulk move to an intermediary wallet before hitting Coinbase. Despite this sale, the government still holds roughly $18 billion in Bitcoin, along with $217 million in Ethereum and $122 million in USDT.
The last time the government made a large transfer—selling 10,000 BTC in August—Bitcoin’s price dipped, and this time was no different, with BTC briefly falling below $95,000. Investors will be watching closely for further sales and their potential market impact.
What’s Next?
All eyes are now on Trump’s upcoming policy decisions, as his stance on crypto could push Bitcoin to new highs. Next Wednesday, the Federal Reserve will also announce its latest interest rate decision, which could further influence market trends.