XRP and TRUMP tokens jumped 12% today, signalling a market recovery ahead of the Federal Open Market Committee (FOMC) meeting scheduled for tomorrow.
The market was hit hard on Monday morning, wiping out over $1 billion in futures positions and dragging the CoinDesk 20 index down by 8.5%. But this gave traders a sharp opportunity to open buying positions.
At the time of writing this, the coins are still 5% up. However, TRUMP’s trading volume has dipped by 12% while XRP experienced a 12% drop over the past 24 hours. But both are still maintaining an equal surge in Market cap at 8% each.
The largest crypto, Bitcoin, also saw a 4% surge to $103,000 after experiencing massive losses earlier this week.
Other tokens like Cardano, Solana and DOGE have seen at least 9% while Ether (ETH) added 4.5% according to CoinMarketCap. In fact, the whole crypto market appreciated by 3%, and this means that some investors are gaining back their confidence.
The 12% rise in TRUMP came after Tuttle Capital announced the first 2x leveraged ETFs in the United States that track major cryptocurrencies and tokens like TRUMP, MELANIA, and BONK. The ETFs aim to double daily price action by 200%, attracting investors who are willing to take the risk.
This recovery is also coming after DeepSeek, an AI rival to OpenAI, caused the U.S. stock markets to decline yesterday as investors worried about overvalued AI investments.
Meanwhile, the crypto market saw an opportunity in DeepSeek’s open-source technology that could support AI-backed blockchain projects. Nick Ruck of LVRG Research stated, “DeepSeek’s advancements could improve efficiency and innovation in crypto projects using AI.”
Right now, the whole market is waiting for the FOMC meeting. No interest rate cuts are expected, but traders expect policy announcements and economic data releases like earnings reports from big tech companies like Apple and Meta, which may have some impact on crypto sentiments.
Meanwhile, Singaporean QCP Capital compared the behaviour of the current market to the resilience of the Year of the Snake on the Chinese zodiac. According to the firm, being adaptable and resilient will dictate the future of crypto in 2025.
“As we approach the Year of the Snake, the market’s twists and turns remind us of the wisdom, adaptability, and resilience this zodiac symbolizes – qualities that will be essential as we navigate 2025’s challenges and opportunities,” the firm said in a broadcast.
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