XRP News Today: Bitcoin Surges 20% to $120,000 as China Eases Crypto Stance

The cryptocurrency market witnessed a notable rally this week, with Bitcoin approaching the significant resistance level of $120,000 and the Fear and Greed Index entering the greed zone at 67. This surge can be attributed to several key factors.

One of the primary drivers of the rally is the optimism surrounding Chinese companies potentially entering the cryptocurrency industry. This optimism has led to a surge in brokerage stocks, reaching their highest levels in months. Additionally, a Shanghai regulator announced plans to explore and intensify research on the industry, marking a significant shift since China's previous ban on cryptocurrencies. Analysts anticipate that this could lead to eased regulations for investing and trading cryptocurrencies, potentially increasing trading volumes as much of the current activity in China is conducted illegally.

Another significant factor contributing to the rally is the surging demand for cryptocurrency ETFs. Bitcoin ETFs saw inflows of $1 billion on Thursday, bringing the cumulative figure to over $51.3 billion. Ethereum ETFs also experienced substantial inflows, with over $383 million added, pushing the cumulative figure to over $5.1 billion for the first time. BlackRock’s ETHA ETF has over $5.6 billion in assets, while Grayscale’s ETHE and ETH have over $3.2 billion and $1.5 billion, respectively. Other top crypto ETFs, such as the Teucrium 2x Long Daily XRP (XXRP) and the newly launched REX-Osprey SOL + Staking ETF (SSK), have also seen significant asset additions. This indicates a strong demand for these coins among investors, with analysts expecting the SEC to approve several altcoin ETFs, including XRP, Solana, Bonk, and Dogecoin. The high demand and low supply of Bitcoin and Ethereum on exchanges further support the upward price movement.

Additionally, hopes for interest rate cuts by the Federal Reserve later this year have contributed to the rally. Christopher Waller, a member of the Fed’s Board of Governors, expressed support for cutting interest rates later this month. Donald Trump has also called for a 300 basis points cut, which could influence the Fed's decision-making process. Risky assets like stocks and cryptocurrencies tend to perform well when interest rates are cut, further fueling the rally.

Technical factors also play a role in the cryptocurrency rally. Bitcoin has formed a cup-and-handle pattern and a bullish flag, remaining above all moving averages. Top oscillators like the Relative Strength Index (RSI) and the MACD have also rallied, indicating strong bullish momentum. This technical strength suggests that Bitcoin could continue rising, with bulls targeting the key resistance level at $150,000, potentially leading to a broader crypto market rally.

The rally was further fueled by political pressure on the Federal Reserve, institutional and corporate adoption, and overall market optimism. These factors collectively contributed to the bullish sentiment that drove the cryptocurrency rally. The surge in Bitcoin's price triggered a massive wave of liquidations, wiping out more than $1.11 billion in short contracts, highlighting the market's volatility and the significant impact of price movements on short positions. The rally was driven by long-term accumulators and spot inflows, suggesting that Bitcoin's next milestone price is in the $130,000 range. According to analysts' forecasts, the rally is expected to continue, with Bitcoin likely to hit $130,000 before serious profit-taking occurs.