Here’s Why BTC, XRP, SOL, & DOGE Rallied This Year, Matrixport Report

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As a seasoned researcher who has closely followed the crypto market for years, I must say that this week’s volatility is nothing new to me. The rollercoaster ride of Bitcoin and other top cryptocurrencies has become an integral part of my daily routine.

This week saw the cryptocurrency market experiencing fluctuating trades, with surges observed in recent months serving as a precursor. Notable coins such as Bitcoin (BTC), Solana (SOL), XRP, Dogecoin (DOGE), and other top altcoins have seen substantial growth this year. Let’s delve into some possible reasons for the remarkable performance of these cryptos, as suggested by Matrixport.

Why BTC Records Robust Rally This Year?

Cryptocurrencies like BTC and other leading ones have seen substantial growth as investors are increasingly interested in digital assets. Interestingly, Donald Trump’s election victory in November has also contributed to a positive outlook for crypto regulations. This optimism towards regulation has significantly boosted the cryptocurrency market.

Conversely, there’s been a substantial increase in institutional adoption as well, driving prices up noticeably. In fact, Matrixport stated that Bitcoin has reached unprecedented achievements this year due to heightened institutional interest.

Currently, the report brings attention to Bitcoin’s latest peak at $108,000. It attributes this rise primarily to two factors: first, the approval of a Spot Bitcoin ETF in January, and second, President Donald Trump’s suggestion for establishing a national Bitcoin reserve. Furthermore, the report emphasizes that institutional interest, demonstrated by the increased buying activity of companies like MicroStrategy, Metaplanet, and others, has significantly boosted optimism surrounding Bitcoin.

Additionally, mining companies such as Hut 8 and MARA are joining the competition in amassing Bitcoins. Moreover, the report suggests that the value of Bitcoin could reach $160,000 by 2025, indicating continued growth for this digital asset.

XRP, SOL, & DOGE Follows Trend

The increase in Bitcoin (BTC) has ignited a bull run across the entire cryptocurrency sector. Major altcoins such as Ethereum, Ripple‘s XRP, Solana (SOL), Dogecoin (DOGE), and others have seen significant growth this year due to their strong performance. Interestingly, the report revealed that XRP experienced a surge following its “significant court victory” against the US Securities and Exchange Commission in August. The judge determined that XRP is not considered a security, offering greater regulatory clarity for the asset.

Contrastingly, Donald Trump’s election win and Ripple’s introduction of its stablecoin (RLUSD) have intensified investor optimism. At the same time, Solana experienced a surge due to its technological progressions. The report indicated that “Solana’s high-capacity, cost-effective blockchain propelled it to the front line in decentralized applications and speculative assets. Moreover, popular Solana meme coins like Popcat and Dogwifhat have also seen increased popularity, amplifying market sentiment further.

2024 saw Dogecoin flourish alongside Bitcoin and other cryptocurrencies, thanks to a growing market emphasis on meme coins. The increasing popularity of memes also played a significant role in this surge. Interestingly, during Trump’s administration, Elon Musk’s Department of Government Efficiency (DOGE) added more fuel to the fire, as Musk’s endorsement of Dogecoin on social media platforms and the department’s abbreviation D.O.G.E. mirroring Dogecoin, contributed to its rise.

As a crypto investor penning this down, I find myself grappling with the unexpected downturn that swept through the crypto market today. While there had been encouraging trends and recent surges, today’s events saw a dramatic 10% drop, bringing the global crypto market cap to approximately $3.21 trillion. The kingpin of crypto, Bitcoin, experienced a significant dip, slipping nearly 8%, which is clearly an indication of intense selling pressure in the market.

Conversely, the value of Ethereum dropped by 12%, with XRP experiencing a decrease of more than 9%. Similarly, Solana and Dogecoin saw declines of 11% and 20% respectively, suggesting a rather pessimistic atmosphere within the market.

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2024-12-20 16:14