In the dynamic world of cryptocurrency, two major players, Bitcoin and XRP, are making headlines with substantial price surges. These developments come in the midst of legal victories and growing anticipation for the approval of Bitcoin Exchange-Traded Funds (ETFs). This news is captivating both institutional investors and retail traders, hinting at the possibility of a bullish trend ahead.

Bitcoin’s Remarkable Comeback

Bitcoin has had a rollercoaster journey, characterized by price surges and dips driven by various factors, including legal battles, concerns about interest rates, and regulatory challenges. Notably, the digital currency experienced a bearish trend, hitting a low of $16,000 in late November. However, at the time of writing, Bitcoin is trading at around $30,020 against the US dollar.

According to data from CoinGecko, the global cryptocurrency market capitalization now stands at a staggering $1.18 trillion, with a 5.03% change in the last 24 hours and a remarkable 24.06% change in the past year. Bitcoin’s market capitalization currently sits at $586 billion, making up nearly 50% of the total crypto market.

The recent surge above $29,800 can be attributed to the exciting news regarding Bitcoin ETFs. Just recently, Bitcoin was trading at $28,600, even in the wake of a major scandal involving accusations of fraud against prominent players in the crypto industry. The New York Attorney General accused Digital Currency Group and its subsidiary, Genesis Global Capital, as well as the Gemini crypto exchange, of allegedly defrauding over 230,000 investors of $1 billion.

Surprisingly, Bitcoin’s price showed resilience in the face of these challenges and the rising interest rates. The 10-year US Treasury yield reached 4.97%, nearing levels not seen since the global financial crisis. Despite these potentially confidence-shattering events, Bitcoin registered a 1% increase to $28,600, following a brief rally that almost touched the $29,000 mark. This surge was partly fueled by the fake reports suggesting that the SEC had approved spot Bitcoin ETFs.

Crypto Market Anticipates a Bull Run

In another corner of the crypto market, Ripple’s XRP also witnessed a 6% rise after a significant legal victory. The US Securities and Exchange Commission (SEC) dropped charges against Ripple Labs Chief Executive Brad Garlinghouse and Chairman Chris Larsen. This legal battle revolved around whether XRP should be categorized as a security, and it marked a monumental win for XRP, concluding a three-year-long case that began in 2020.

The dismissal of charges brought a sense of relief to XRP investors, propelling the token’s price upward. This turn of events underscores the importance of legal clarity in the crypto space, as regulatory matters significantly impact market sentiment.

According to Jerome Powell, the Chairman of the US Federal Reserve, inflation remains a concern. However, he also emphasized that a long-term increase in inflation would lessen the need for higher interest rates. This perspective has the potential to influence market dynamics, particularly in the context of cryptocurrencies that have often been seen as hedges against traditional financial instruments.

Surprisingly, the lawsuit against Digital Currency Group (DCG) and Gemini did not appear to affect the Grayscale Bitcoin Trust (GBTC) share price, which actually saw a 2% increase. This unexpected development was a boon for GBTC, considering that Grayscale is a subsidiary of DCG. It demonstrates the resilience and adaptability of certain players in the crypto industry.

The positive reception of news about Bitcoin ETFs has resonated across the market, with major institutions signaling their interest in these exchange-traded funds. Grayscale Bitcoin Trust, for instance, has plans to transition its $15 billion Bitcoin investment into a Bitcoin Exchange-Traded Fund (ETF).

This decision followed Grayscale’s victory in August when the SEC denied their ETF application. The recent lack of appeal from the Securities and Exchange Commission, after the expiration of the 45-day grace period, solidifies this move, indicating a shift towards greater acceptance of cryptocurrency-based financial products.