XRP bullish trend approaching… stock market rebound combined with expectations of relaxed regulation

Crypto analyst Zach Rector stated that whether XRP’s next bull run is “if” or “when” is no longer the question, but rather “when” it will happen. Against the backdrop of the U.S. stock market increasing $10 trillion in market cap over 39 days, the trend of liquidity shifting into digital assets has already begun.

According to foreign media reports on the 13th (local time), Rector believes that based on recent sharp rises in some assets, capital rotation has fully commenced. The Nasdaq index has broken through 29,000 points for the first time in history, while the S&P 500 has touched 7,400 points. He explained that such liquidity expansion in the past has also spread to Bitcoin and altcoins.

DAG and ONDO, seen as precursors to a “altcoin rebound”

Rector cited that Constellation DAG surged 200% after announcing acquisition news and Nasdaq listing schedule, while Ondo (ONDO) soared over 137% following announcements of Ripple, JPMorgan, and Mastercard tokenized government bond settlement news. He interprets this as a signal that “rotation into digital assets” has begun.

He specifically pointed out that although ONDO-related news is based on the XRP ledger, the XRP price did not react significantly. He described this as “excessive suppression,” but also noted that in the previous cycle, XRP showed stronger performance than ONDO, so similar patterns could reoccur.

CLARITY Act and Trump’s schedule as variables

In the market, regulatory issues are also seen as important variables. The U.S. Senate Banking Committee is scheduled to review an amendment to the CLARITY Act at 10:30 a.m. (Eastern Time) on the 14th. Rector said that before the midterm election schedule fully kicks in, this might be the last realistic chance for the bill to pass.

If the bill passes the committee and is coordinated between the House and Senate, and enters the president Trump signing stage before July 4th, the largest regulatory uncertainty suppressing the virtual asset market, including XRP, could be significantly alleviated. However, he also pointed out that since whether it can actually pass remains uncertain, expectations and caution should be maintained simultaneously.

Retail investors retreat, large funds are moving

Rector also mentioned that Coinbase’s XRP trading volume has decreased by 18% year-over-year. He interprets this as a sign of retail investors leaving the market, but also notes that significant rises often occur during such periods.

Currently, XRP accounts for up to 90% of his investment portfolio. This means that the more the market appears quiet, the more likely the next rally could quietly start. The sharp rise in the U.S. stock market combined with expectations of regulatory easing has reignited market attention on XRP and the entire altcoin sector.

Summary by TokenPost.ai 🔎 Market interpretation: Early signs of liquidity shifting from the U.S. stock market to the crypto market have appeared. The surge in some altcoins (DAG, ONDO) is seen as a precursor to capital rotation. Although XRP’s reaction has been limited, historical patterns suggest a potential delayed surge. 💡 Strategic points: Currently in a retail exit phase, possibly a “quiet accumulation” stage. The passage of the CLARITY bill (regulatory easing) is a key trigger; pre-positioning strategies before the event are crucial. However, due to the uncertainty of the bill’s passage, a phased approach is recommended. 📘 Terminology explanations: CLARITY Bill: U.S. legislation aimed at clarifying cryptocurrency regulation Liquidity rotation: The phenomenon of capital shifting between asset classes (e.g., stocks → cryptocurrencies) XRP ledger: Blockchain infrastructure for XRP-based payments and asset issuance Retail exit: The state of declining individual investor participation

💡 Frequently Asked Questions (FAQ)

Q. Why is a stock market rally seen as a signal for crypto prices to rise? When market liquidity increases, some funds seek higher yields and flow into cryptocurrencies. Historically, Bitcoin and altcoins tend to follow stock market gains. Q. Why might XRP respond more slowly than other altcoins? XRP often exhibits a “lagging pattern,” showing strong rises later in the market cycle rather than early. Despite related infrastructure news, its current price response is limited, and it is considered to be in a suppressed state. Q. If the CLARITY bill passes, what actual market changes might occur? Reduced regulatory uncertainty could make it easier for institutional funds to flow in and may boost overall market confidence. For assets like XRP, heavily affected by regulatory issues, this could be a significant bullish catalyst.

TP AI Tip: This article is summarized based on the TokenPost.ai language model. Key content may be omitted or differ from actual facts.