XRP (XRP 4.29%) is seeing strong gains in Monday's trading. The cryptocurrency's token price had risen 3.8% over the past 24 hours as of 6:40 p.m. ET. At the same point in time, Bitcoin was up 1.1%, and Ethereum had risen 0.3%.
XRP is getting a boost today thanks to investors banking on the likelihood that the Federal Reserve will announce a cut in interest rates later this month. The cryptocurrency also appears to be getting a boost from news that an exchange-traded fund (ETF) built around Dogecoin could launch in the near future.
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XRP rises on rate-cut hopes
Following some recent signs that the U.S. economy is weakening, investors now broadly expect that the Federal Reserve will cut interest rates this month. Recent jobs reports have come in weaker than expected, and it's anticipated that the Bureau of Labor Statistics will publish a report tomorrow that issues additional downward revisions for jobs growth.
Investors are betting that lower interest rates will help power gains for XRP and other cryptocurrencies, and there is historical precedent for this expectation. On the other hand, there's also a risk that a slip into recession could cause substantial valuation pullbacks for the crypto market.
CRYPTO: XRP
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Dogecoin news is also pushing XRP higher
The Securities and Exchange Commission (SEC) could reportedly be on the verge of approving the first Dogecoin ETF. Hopes that new ETFs will be launched that include XRP have been a bullish catalyst for the cryptocurrency, and today's Dogecoin ETF news seems to be a positive indicator on that front.
If the SEC approves ETFs built around Dogecoin, there's a good chance that it will also approve XRP ETFs. After delaying its decision on XRP ETFs in August, the agency could be poised to issue its decisions on funds centered around the cryptocurrency next month.
