Crypto Rally Shocks Markets as XRP, Dogecoin Surge Amid Policy Optimism

A substantial rally among smaller cryptocurrencies, known as altcoins, has sent XRP up more than 40%, fueled by optimistic predictions about favorable U.S. crypto regulations and macroeconomic concerns over inflation.

Key Altcoin Performance

Among the 20 cryptos with the largest market capitalization, XRP leads the surge, gaining over 43% in value. Memetic Dogecoin has also performed strongly, rising nearly 20% daily and 19.5% weekly according to CoinGecko data.

Favorable U.S. Policy Legislation

The momentum coincides with significant steps towards regulatory clarity, as the U.S. House of Representatives approved three key bills pushing forward the White House’s pro-crypto agenda.

• In a major legislative win, the House passed the GENIUS Act, establishing rules for stablecoin issuance by private companies. It now awaits the President’s signature.
• Additionally, the House voted on and passed the CLARITY Act (crypto regulation) and the Anti-CBDC Surveillance State Act (preventing Fed digital currency issuance), though both are pending Senate action.

The legislative package marks a victory towards achieving the U.S. goal of becoming a global crypto hub.

Analyst Insights

Researchers cite the combination of unfolding U.S. policy benefits and heightened government spending as a primary driver. Sean Dawson from Derive Research stated, “The confluence of ‘favorable U.S. government policy and well-timed institutional engagement has resulted in blood rushing back into the crypto market.”

Dawson further explained that escalating government spending fuels fears of inflation, prompting investors to seek alternative assets like crypto.

Beyond XRP: Broader Market Hubs

The rally extends across various segments:

– Established players like Sharplink Gaming and Bitmine Immersion Technologies leverage corporate treasury strategies.

– XRP displays strong network growth signals, with Santiment noting a surge of new addresses suggesting fund inflows.

– Analysts position XRP and Dogecoin alongside Bitcoin (“Higher beta to Bitcoin”), attracting speculative capital seeking amplified returns, albeit one vulnerable to sharp corrections.

– Other altcoins such as Curve DAO, Bonk, and Hedera have also surged significantly, the latter noted by veteran trader Peter Brandt as one of the most “bullish charts.”