XRP (XRP +9.57%) is roaring higher this week amid a strong bullish backdrop for the broader cryptocurrency market. As of 6:30 a.m. ET on Saturday, its token price had risen roughly 47% over the past seven days. Meanwhile, Bitcoin had risen roughly 22% over the stretch, and Ethereum was up 28%.
The crypto market is surging this week thanks to a combination of political and macroeconomic catalysts. Investors became more optimistic that the Clarity Act could be passed this year, and an unexpected announcement from the U.S. Treasury also supported bullish momentum.
Image source: Getty Images.
Investors adopted more optimistic positioning on the Clarity Act
On Wednesday, leaders from prominent cryptocurrency trading platforms met with President Donald Trump at the White House to promote the passage of the Clarity Act. Trump publicly advocated for the bill to be passed before the end of the year, which lifted investor optimism that the legislation could be passed before Congressional seating changes following the midterm elections. While investors responded positively to the event, opposition from Democrats seeking stronger ethics rules in the bill still presents a substantial hurdle.
CRYPTO: XRP
Key Data Points
Did the U.S. Treasury just issue a major bullish signal for crypto?
The U.S. Treasury announced this week that it would be increasing the size of its long-term bond buyback programs per session from $2 billion to $4 billion between Sept. 9 and Nov. 4 -- a move that the investors interpreted as a strong bullish catalyst for the crypto market. The announcement had the effect of pushing bond yields down, which tends to be a positive catalyst for cryptocurrencies and other high-risk investments.
In addition to increased liquidity in the market stemming from the expanded buybacks and lower bond yields, the move also had the effect of weakening the strength of the dollar. The increased buyback program came as a surprise and caused investment to flow into assets that are seen as providing protection from a weakening dollar -- and XRP is benefiting from the trend.
