Investing.com-- Bitcoin climbed on Wednesday as investors awaited the FOMC meeting and reacted to the announcement that the U.S. Securities and Exchange Commission (SEC) is set to drop its long-standing appeal against Ripple.
The world’s largest rose around 3% to $84,463.0 by 10:56 (14:56).
The token lost 1.5% in the previous session, reaching below $82,000.
Bitcoin struggles for clear direction ahead of Fed rate decision
Despite today’s boost, Bitcoin saw marginal moves this month, as markets were battered by recent tariff announcements from U.S. President Donald Trump. On the other hand, gold prices have been hitting record highs on the back of its safe-haven appeal.
The Federal Reserve’s two-day policy meeting started on Tuesday, where interest rates are expected to remain steady at the end of the meeting.
The Fed is expected to maintain its hawkish outlook and adopt a wait-and-see approach amid sticky inflation, and Trump’s ongoing trade war, which has fueled recession fears in the U.S.
Market participants will closely gauge the Fed’s commentary on Trump’s tariff policies and the potential implications for inflation and economic growth.
In December 2024, the Federal Reserve implemented a 25 basis point rate cut, bringing the benchmark rate to the 4.25%-4.50% range. Despite this easing, the Fed’s hawkish tone, emphasizing concerns over persistent inflation, led to a stronger U.S. dollar and tighter financial conditions.
The crypto markets, have since then, lost the steam which earlier stemmed from expectations of friendlier crypto regulations under Trump’s administration.
Any indications of economic slowdown due to trade tensions could lead the Fed to adjust its policy stance, impacting liquidity and investor sentiment in the cryptocurrency space.
XRP soars 10% as Ripple CEO says SEC will drop appeal
XRP soared 10% on Wednesday after Ripple CEO Brad Garlinghouse announced that the U.S. Securities and Exchange Commission (SEC) will drop its appeal against the company.
"This is it – the moment we’ve been waiting for. The SEC will drop its appeal," Garlinghouse posted on X. "A resounding victory for Ripple, for crypto, every way you look at it."
The legal battle began in 2020 when the SEC sued Ripple, alleging it raised $1.3 billion through unregistered XRP sales. In 2023, Judge Analisa Torres ruled that while Ripple’s institutional sales violated securities laws, programmatic sales to retail investors did not. Ripple was fined $125 million, and the SEC initially sought an appeal.
The lawsuit reportedly caused $15 billion in losses for XRP holders, making it one of the SEC’s most significant actions against the crypto industry.
However, following the departure of SEC Chair Gary Gensler, the agency has pulled back on some enforcement efforts, including dropping its case against Coinbase (NASDAQ:COIN).
While Trump has nominated Paul Atkins as the next SEC chair, his confirmation hearing has yet to be scheduled.
Crypto price today: XRP optimism boosts broader crypto market
XRP’s rally fueled optimism across the broader cryptocurrency market.
World no.2 crypto Ethereum surged 7.4% to $2,031.55.
Solana also gained over 7%, while Cardano jumped 6.5%, and Polygon added 5.1%.
Among meme tokens, Dogecoin rose approximately 5%, while $TRUMP climbed 4%.
Ayushman Ojha contributed to this report.