XRP surged by 17% in the past 24 hours, outperforming Bitcoin (BTC) and other major cryptocurrencies, as regulatory changes in the U.S. provided a boost to tokens previously hindered by the Securities and Exchange Commission (SEC).

Trading above 82 cents during early Friday hours in Asia, XRP extended its seven-day gains to 50%, reaching its highest levels since June 2023. The rally came in the wake of a lawsuit filed by 18 U.S. states against the SEC, accusing the agency and its chairman, Gary Gensler, of overreach and unconstitutional regulation of the crypto space.

There is growing speculation that a potential Trump administration, which could bring more crypto-friendly policies, may favor U.S.-based companies like Ripple Labs (the issuer of XRP) and Uniswap (UNI), companies seen as working to enhance value for token holders. This speculation has fueled optimism within the market.

Meanwhile, Bitcoin and other major coins experienced a 4% drop following profit-taking activity after days of upward movement. The decline was triggered by hawkish remarks from Federal Reserve Chairman Jerome Powell, who dampened expectations for an imminent rate cut. “The strength we are currently seeing in the economy gives us the ability to approach decisions carefully,” Powell stated at a conference in Dallas, leading the market to revise its expectations for a rate cut at the Federal Open Market Committee (FOMC) meeting in December from 83% to 66%.

Bitcoin’s price slipped from $93,000 to $88,000, resulting in over $120 million in liquidations. Ethereum (ETH) and Solana (SOL) also saw declines of around 3.5%, while meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) fell by up to 5%.

Despite the pullback, sentiment in the broader crypto market remains optimistic. The CoinDesk 20 Index, which tracks the largest tokens by market capitalization, showed little change. Additionally, Pepe (PEPE), a recently added top-20 token, corrected by 8% after surging 75% the previous day, following its listing on Coinbase, briefly hitting a market cap of $10 billion.

QCP Capital traders remain bullish on Bitcoin’s long-term prospects, projecting a potential price target of $100,000 to $120,000, citing Bitcoin’s recent rally and the broader market shift ahead of the 2024 U.S. elections. “The strength we’re seeing in Bitcoin suggests a systematic shift, with Trump’s proposed strategic BTC reserve and his pivot from gold to Bitcoin adding a strong narrative that could push prices even higher,” QCP said in their latest update.