XRP Gains 11% Amid Bitcoin’s Strong Start to the Year.

XRP Outperforms with 11% Surge as South Korean Trading Volumes Drive Market Momentum

XRP surged by 11% on Thursday, emerging as the top performer among major cryptocurrencies. This boost in price was fueled by a notable spike in trading volumes from South Korean exchanges, particularly UpBit, where $1.3 billion worth of XRP was traded. A CoinDesk analysis this week highlighted that such high trading volumes, particularly in Korea, are often indicative of future price volatility, with a tendency toward upward movement.

This rally in XRP coincided with a broader market rebound, as Bitcoin (BTC) surpassed $95,000, recovering from the losses it experienced the previous week. The overall crypto market is entering 2025 with renewed optimism, partly driven by expectations of a more crypto-friendly regulatory environment under the incoming U.S. President, Donald Trump, who has made promises to support the sector, including the establishment of a strategic bitcoin reserve.

Other major cryptocurrencies also saw positive movements, with Cardano (ADA), Solana (SOL), and Chainlink (LINK) gaining up to 8%. Ether (ETH) and Binance Coin (BNB) rose by around 3%, while meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) gained 5%. The CoinDesk 20 index, which tracks the largest liquid cryptocurrencies by market capitalization excluding stablecoins, increased by 5.8%, reflecting a broad-based rally across the sector.

The anticipation of bullish trends for 2025 is also linked to the upcoming Bitcoin halving event in 2024, which has historically triggered positive price movements in the following year due to a reduced supply of new tokens. The crypto market tends to follow a four-year cycle tied to the halving events, with some analysts predicting that sectors like memecoins, AI-based projects, and real-world assets will lead the market during this cycle.

Firms like Galaxy Research also forecast a major shift in the market in 2025, with institutional investors, corporations, and nation-states increasing their adoption of bitcoin. Galaxy’s research suggests that at least five Nasdaq-100 companies and five countries will begin investing in Bitcoin, predicting a price target of $185,000 for BTC and $5,500 for Ether (ETH) this year.

Echoing this sentiment, Singapore-based QCP Capital believes that institutional reallocations could significantly impact the market. “As Bitcoin gains wider institutional adoption, we expect larger allocations, which will further stabilize its price movements and strengthen Bitcoin’s dominance,” the firm stated in a recent message. “This shift should reduce volatility and bring Bitcoin’s price dynamics closer to those of traditional equities.”

Some analysts speculate that as Bitcoin becomes more mainstream, its notorious volatility will diminish, making it an even more attractive asset for institutional investors.

Augustine Fan, head of insights at SOFA, shared his thoughts with CoinDesk, noting, “Bitcoin’s correlation with the S&P 500 has remained strong, signaling its path toward becoming a mainstream asset class. With decreasing realized volatility, Bitcoin will become an essential part of traditional portfolios, offering diversification and potential for alpha.”

Fan also added, “As the asset class matures, we expect volatility to continue decreasing, just as we’ve seen with other financial assets. This trend should continue to solidify crypto’s place in the broader market.”

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