The cryptocurrency market is experiencing a significant rebound after a sharp sell-off on Monday triggered by fears of extended high interest rates into 2025. Dogecoin, Bitcoin, and XRP are leading the recovery, showcasing impressive gains.
Dogecoin’s price jumped 11% on Tuesday, reaching $0.357, effectively erasing Monday’s losses and nearing its value from the previous week. Despite this impressive rebound, Dogecoin remains down 12% over the past month, a stark contrast to its strong December performance.
XRP witnessed an even more substantial surge, climbing 9% to reach $2.66, its highest price point of 2025. This impressive rally places XRP within striking distance of its seven-year high of $2.82, achieved in December. The surge is attributed to growing optimism surrounding potential XRP ETF approvals. Further bolstering XRP’s price is Ripple CEO Brad Garlinghouse and CLO Stuart Alderoty’s meeting with President-elect Donald Trump last week, signaling potentially stronger ties with the incoming administration.
Bitcoin, which experienced a significant drop on Monday, has also staged a strong comeback. Its price has risen by 5%, reaching $96,905. Ethereum and Solana followed suit, posting gains of 6% and 5%, respectively. The overall market recovery reflects a renewed sense of investor confidence following the initial panic spurred by interest rate concerns.
Data from CoinGlass reveals that over $300 million in futures were liquidated within the last 24 hours, predominantly short positions. While Bitcoin and Ethereum experienced more modest gains compared to XRP, the overall positive momentum across the cryptocurrency market is undeniable. XRP’s exceptional performance, outpacing other major cryptocurrencies, can be partly attributed to Ripple’s positive outlook on XRP ETFs.
This widespread recovery indicates that investors are regaining confidence despite lingering concerns about economic factors like interest rates. With leading cryptocurrencies like Bitcoin, Ethereum, and XRP exhibiting strong upward trends, the market appears poised for continued growth in the near future.
