Bitcoin Hits $85,775 as Fed Maintains Rate Cut Projections; XRP Soars on SEC Case Dismissal

Bitcoin surged 3% to $85,775.5 by 01:56 ET (05:56 GMT) on Thursday, extending gains as investor sentiment improved after the Federal Reserve reaffirmed its plan to cut interest rates by 50 basis points this year. The Fed kept rates unchanged and acknowledged economic uncertainty under President Donald Trump’s trade policies, boosting risk assets.

XRP outperformed the market, jumping 7.3% to $2.4599, after the SEC officially dropped its long-running lawsuit against Ripple. The decision aligns with a broader regulatory shift under Trump, who appointed pro-crypto lawyer Paul Atkins as SEC Chair. The SEC has also eased its stance on Coinbase and Kraken.

Ethereum rose 4.1% to $2,018.12, while Cardano gained 2.9% and Solana surged 6.4%. Polygon added 2.6%, reflecting broader crypto market optimism. Meme tokens also saw gains, with Dogecoin up 4.1% and $TRUMP increasing 3.6%.

The latest crypto rally follows a period of selloffs, with bargain hunters re-entering the market. With the Fed maintaining a dovish stance and regulatory changes favoring digital assets, sentiment has turned bullish, driving momentum across Bitcoin, altcoins, and meme tokens.