Bitcoin, Ethereum, and XRP surge amid positive global news and crypto-friendly laws, fueling market growth - IcoHolder.

After months of relative silence, the cryptocurrency market is experiencing a powerful resurgence. Bitcoin has surged to $104,000, marking a return to its February highs. Ethereum has shocked the market with a 20% jump in just one day, while XRP has also seen a solid 7% increase. But what’s fueling this sudden rally in the top cryptocurrencies?

The catalyst for the surge began on May 7 when the Federal Reserve announced it would keep interest rates unchanged between 4.25% and 4.50%. This decision came amidst concerns over slow economic growth and high inflation. Fed Chairman Jerome Powell also highlighted potential risks from tariffs, prompting investors to seek refuge in cryptocurrencies as a safer asset class. The move boosted investor sentiment across the digital asset market.

The optimism didn’t stop there. A landmark trade agreement between the U.S. and the U.K. has also helped improve the global economic outlook. This deal, which reduces tariffs and enhances market access, further boosted the appeal of cryptocurrencies as a hedge against inflation. Furthermore, upcoming trade talks between U.S. and Chinese leaders have raised hopes that even lower tariffs could be on the horizon, adding to the positive momentum.

Bitcoin’s impressive climb is not just attributed to news events; it’s also supported by strong fundamentals. Several U.S. states, including Missouri, Arizona, and Oregon, have introduced crypto-friendly laws, with Missouri even removing taxes on Bitcoin gains. This regulatory shift has made Bitcoin more attractive to investors. Additionally, Bitcoin ETFs have seen substantial inflows, with $117 million pouring into the asset class on May 8 alone. BlackRock led the charge with $69 million, followed by Fidelity and ARK Investment, contributing $35.3 million and $13.1 million, respectively.

While Bitcoin has seen a 5% increase, Ethereum has been the standout performer of the day. Its 20% rise was sparked by the release of the highly anticipated Pectra upgrade. This update, which enhances wallet access and increases staking limits, pushed Ethereum’s price above $2,220, making it the largest gainer among the top 25 cryptocurrencies. Despite the surge, Ethereum remains significantly below its all-time high of $4,721, down nearly 55%.

XRP, the fourth-largest cryptocurrency by market capitalization, has also benefited from positive news. The token surged nearly 7%, trading around $2.29. The price increase coincided with reports that Ripple and the U.S. SEC may be nearing a settlement in their ongoing legal battle. Additionally, new partnerships, including Ripple’s collaboration with Hidden Road and Wellgistics Health to adopt XRP for payments, have further bolstered the coin’s growth.

With positive global economic signals and favorable regulatory developments, the cryptocurrency market is seeing a powerful resurgence, and the rally in Bitcoin, Ethereum, and XRP suggests that the digital asset space is far from slowing down.