Fed Triggers Crypto Greed as XRP, Stellar XLM, Bonk, Ondo, Floki Prices Soar

The Federal Reserve has triggered a risk-on sentiment in the financial market that has pushed the prices of Bitcoin and stocks higher this week.

XLM, XRP, Bonk, and Floki have rallied

Stellar Lumens (XLM) price surged to $0.1080 on Wednesday morning, its highest point since June 5th and 36% above its lowest point this month.

Ripple’s XRP token has also been one of the best-performing major cryptocurrencies this week as it jumped to $0.5870, its highest level since April 11th.

Other tokens have also roared back. Bonk, a popular meme coin, has spiked to $0.000030 while Ondo Finance and Floki rose to $1.30 and $0.00020, respectively.

XLM vs XRP vs Floki vs Ondo vs Bonk

The same trend is happening in the stocks market where the top indices in the United States, Europe, and Asia have surged to their record highs. The Dow Jones rose by 700 points on Tuesday while indices like Australia’s ASX 200, UK’s FTSE 100, and Japan’s Nikkei 225 have also hit their all-time highs.

This performance has triggered a sense of greed in the financial market. The fear and greed index that is tracked by CNN has jumped to the greed zone of 64. Its sub-indexes like market momentum, put and call options, and safe haven demand have moved to the extreme greed area.

The same trend is happening in the crypto industry where the fear and greed index has moved from the fear area of 40 to the greed zone of 60.

Fed is committed to cut rates

The main reason for this greed is the Federal Reserve. In his statement this week, Jerome Powell, the Fed Chair, noted that the bank would consider cutting interest rates before the headline inflation drops to the 2% level.

The Fed is now mostly concerned about the labor market since the jobless rate has moved to 4.1%, its highest level since 2021. Therefore, analysts expect that the Fed will deliver its first cut in its September meeting.

Other reasons have led to this greed in the crypto market. For example, the Securities and Exchange Commission (SEC) has signaled that it will give the green light of spot Ethereum ETFs, a move that opens the door to other spot crypto ETFs like Solana and Avalanche.

Additionally, it appears that crypto investors accumulated Bitcoin, Ripple, and other cryptocurrencies during the last sell-off. Spot Bitcoin ETFs have now had over $16 billion in inflows this year. Data shows that large XRP holders have also been buying more coins lately.