XRP made a swift 7% leap in pricing during midday trading, propelled largely by increased speculation around U.S. Federal Reserve interest rate policy. Both XRP and Ethereum (ETH) experienced similar surges as market sentiment briefly turned bullish.

Federal Reserve Rate Decision Sparks Crypto Rally

The primary driver behind the rapid upward movement for XRP and ETH appears to have been investor reaction to newly released U.S. economic data showing continued softening in the labor market. As jobless claims ticked higher and employment growth cooled, many market watchers recalibrated their expectations for a potential Fed rate cut in the coming months.

This shift in macroeconomic outlook triggered fresh optimism in the crypto market, where digital assets like XRP often benefit from looser monetary policies. Much like equities, cryptocurrencies are viewed by some as risk assets that flourish when interest rates drop and liquidity increases.

The sudden rally wasn’t limited to XRP and Ethereum. A broader recovery swept through multiple top cryptocurrencies in the span of just a few minutes, led by rising volumes and a wave of buy orders across major exchanges.

ETH and XRP Reactions: Momentum Driven by Momentum

Ethereum led early in the surge but XRP wasn’t far behind. At one point, both tokens recorded gains of more than 7% in under 15 minutes — a sharp move even by volatile crypto standards. Chart analysts observed that these assets cleared short-term technical resistance levels, further validating the breakout and fueling additional buying pressure.

For XRP, the rally also carried symbolic weight as traders continue watching its regulatory road closely. Though no new legal decisions were pending immediately, XRP’s price action sometimes mirrors investor confidence in its long-term status within U.S. capital markets.

Meanwhile, ETH gained support from developers and institutional interest. Ethereum remains at the center of many decentralized finance (DeFi) and tokenized asset innovations, which tend to draw increased volume during periods of crypto optimism.

Market momentum pushed XRP up 7% in minutes following Fed speculation and trading volume spike.

Broader Implications for Crypto Markets

The brief rally highlighted how sensitive digital currencies remain to macroeconomic indicators and monetary policy developments. Even without formal action from the Federal Reserve, the potential for a pivot has ripple effects across risky asset classes.

Many traders are watching closely for future signals about inflation, employment, and rate benchmarks. The hope, for some, is that more dovish Fed policy could provide tailwinds for both crypto investment and adoption.

However, analysts caution that such rallies can be fragile. Without follow-through, quick gains like this may correct if broader economic conditions or regulatory risks cloud investor enthusiasm.

Still, Thursday’s mini-surge served as a reminder: In the fast-moving world of crypto, significant market moves can happen in mere minutes — and sometimes, they begin with just a whisper about the Fed.

Related: XRP Price: $12M Max Pain for Bears

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