The cryptocurrency market is riding a wave of optimism following a series of pivotal developments across macroeconomic indicators, institutional adoption, and regulatory dynamics. After a period of consolidation at the start of 2025, digital assets surged mid-week as fresh inflation data signaled potential relief from high interest rates. Bitcoin reclaimed the symbolic $100,000 mark, Ethereum gained momentum, and several altcoins posted double- and triple-digit percentage gains over the past seven days.
Inflation Cools, Fueling Rate Cut Expectations
A key driver behind the latest crypto rally was the December Consumer Price Index (CPI) report, which showed core inflation rising 3.2% year-over-year—slightly below the anticipated 3.3%. This modest cooldown has reignited market hopes for aggressive interest rate cuts by the Federal Reserve in 2025.
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Markets reacted swiftly: Bitcoin (BTC) jumped to $99,800 before briefly surpassing $100,000, recovering from an earlier dip below $90,000. **Ethereum (ETH)** followed suit with a 2.01% weekly gain, trading near $3,330. The broader market also benefited, with risk-on sentiment lifting numerous altcoins.
This shift comes amid growing anticipation of a regulatory reset under the incoming administration. With SEC Chair Gary Gensler expected to step down and pro-crypto advocate Paul Atkins poised to take over, investors are positioning for clearer rules and reduced enforcement-heavy tactics.
XRP Surges 45% Amid Regulatory Hopes and Market Momentum
One of the standout performers this week was XRP, which skyrocketed 45.4% to reach $3.33, becoming the third-largest cryptocurrency by market cap at $176.75 billion. The rally was fueled by multiple catalysts:
- Anticipation of a friendlier regulatory environment in 2025
- Speculation around a potential spot XRP ETF approval
- Strong momentum following Ripple’s launch of its own stablecoin
- Increased institutional interest and derivatives activity
Open interest in XRP perpetual futures has hit an all-time high of $2.34 billion, while leverage levels have normalized to around 13%, down from extreme highs in December. This suggests the market is cooling off from speculative frenzy and may be entering a more sustainable growth phase.
Ripple CEO Brad Garlinghouse dismissed the SEC’s recent appeal in their long-running legal battle as “noise,” emphasizing confidence in the company’s trajectory. The lower court previously ruled that XRP sales to retail investors did not constitute securities offerings—a landmark decision that could influence future crypto regulations.
With cross-border payment adoption growing and financial institutions increasingly integrating RippleNet, XRP’s utility-driven value proposition is gaining traction beyond speculation.
BlackRock Launches Spot Bitcoin ETF in Canada
In a major move signaling global expansion of crypto financial products, BlackRock has launched its iShares Spot Bitcoin ETF on Cboe Canada, using the ticker symbols IBIT (CAD) and IBIT.U (USD). This follows the overwhelming success of its U.S.-listed counterpart, which helped propel Bitcoin into six-figure territory through institutional inflows.
The Canadian ETF offers investors exposure to physical Bitcoin, backed 1:1 by actual BTC holdings—a model that has attracted over $15 billion in assets under management since the U.S. debut in January 2024.
Available across major brokerage platforms—from discount to full-service firms—the product underscores growing mainstream acceptance of digital assets as a legitimate asset class. Cboe Canada handles approximately 15% of all trading in Canadian-listed securities, giving the ETF significant visibility and liquidity.
This expansion reflects BlackRock’s strategy to dominate the global crypto ETF landscape and sets a precedent for other asset managers to follow suit in regulated markets.
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Court Orders SEC to Justify Denial of Coinbase Rulemaking Petition
In another blow to the SEC’s regulatory posture, a U.S. appeals court has ordered the agency to provide a detailed explanation for rejecting Coinbase’s 2022 petition for clear crypto-specific regulations.
The court described the SEC’s original response as “arbitrary” and emphasized constitutional due process concerns, noting that enforcing securities laws without clear guidelines creates legal uncertainty for businesses.
While the ruling doesn’t compel the SEC to create new rules, it demands transparency in its decision-making—an important precedent for future engagements between regulators and innovators.
Coinbase had argued that existing frameworks are ill-suited for digital assets, particularly regarding custody and listing requirements. With Paul Atkins expected to lead the SEC soon, industry stakeholders hope for a shift toward rulemaking rather than enforcement-driven regulation.
SEC Appeals Ripple Ruling in Final Push Before Leadership Change
In a last-minute legal maneuver before Gensler’s departure, the SEC filed an appeal seeking to overturn the court’s determination that XRP is not a security when sold to retail investors.
Critics view this move as futile repetition of a failed strategy. Ripple’s legal team responded firmly, with Chief Legal Officer Stuart Alderoty stating: “The SEC's lawsuit is just noise. A new era of pro-crypto regulation is coming.”
Legal experts suggest the appeal is unlikely to succeed but may delay final resolution. However, with a new SEC chair committed to modernizing crypto policy, many expect enforcement priorities to shift dramatically in the coming months.
Frequently Asked Questions (FAQ)
Q: Why did crypto prices rise this week?
A: The primary catalyst was cooler-than-expected inflation data (3.2% vs. 3.3% forecast), which boosted expectations for Fed rate cuts in 2025. This improved risk appetite across markets, especially for speculative assets like cryptocurrencies.
Q: Is XRP now considered a security?
A: According to a U.S. district court ruling, XRP sales to institutional investors met securities criteria under the Howey Test, but retail sales did not. The SEC’s appeal challenges this distinction, but no final determination has been made.
Q: Can I buy BlackRock’s Bitcoin ETF outside the U.S.?
A: Yes—BlackRock has launched its iShares Spot Bitcoin ETF on Cboe Canada under IBIT and IBIT.U, offering Canadian and U.S. dollar share classes accessible through local brokers.
Q: What are recurring buys in crypto?
A: Recurring buys allow investors to automatically purchase fixed amounts of crypto at regular intervals (e.g., $100 of BTC every week), promoting dollar-cost averaging and disciplined investing without manual execution.
Q: Will the SEC change its approach under Paul Atkins?
A: Early signals suggest yes—Atkins has publicly criticized “regulation by enforcement” and supports establishing clear rules for digital assets, which could foster innovation while maintaining investor protection.
Q: How do macroeconomic factors affect crypto markets?
A: Lower inflation and anticipated rate cuts increase liquidity and reduce bond yields, making high-growth assets like crypto more attractive. Conversely, tight monetary policy tends to suppress speculative investments.
What Are Recurring Buys and Why They Matter
Recurring buys—offered by platforms like Gemini, Binance, and Coinbase—let users automate crypto purchases at set intervals (daily, weekly, monthly). For example, investing $50 in Ethereum every Monday builds long-term exposure without emotional trading decisions.
This strategy mirrors dollar-cost averaging (DCA), reducing volatility impact by spreading purchases over time. Originally adapted from e-commerce subscription models, recurring buys are gaining popularity as a disciplined entry method for both new and experienced investors.
While some debate their effectiveness in bull markets (where lump-sum investing may yield higher returns), they remain ideal for consistent portfolio building amid uncertainty.
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Data accurate as of January 16, 2025, at 2:12 PM ET. Prices in USD.
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