### Market Turnaround

An impressive shift is underway in **US equities** and **cryptocurrency** markets. The **S&P 500** has bounced back, rising **22 points** to a session high, marking a **0.4% gain**. After a period of stagnation, the index has rebounded strongly within the last hour.

In a similar vein, **Bitcoin** has increased by **0.8%**, reaching **$94,400** after dipping to **$91,400** earlier in the day. 

### Possible Factors Behind the Movement

While there hasn't been a specific catalyst for this upward trend, it seems the market is reassessing the recent **new home sales data**, potentially sensing a greater likelihood of a **Federal Reserve rate cut**. Additionally, **US yields** have seen a decrease, contributing to the positive sentiment.

![Bitcoin Market Movement](https://images.financemagnates.com/user-profiles/c97fe488-0a4b-4549-9382-1fe0b770a597_size50.jpeg)

*Bitcoin Price Movement in the Last 10 Minutes*

Bitcoin and US Stocks Surge: What's Driving the Market Rebound?

### The Hawk Tuah Coin Disaster

Haliey Welch, known for her viral TikTok fame, launched her own **meme coin** called **Hawk Tuah** on the **Solana blockchain**. Initially, the coin skyrocketed to a staggering **market capitalization of nearly $500 million**, but it plummeted **95%** shortly after, leaving many traders facing significant losses.

![Haliey Welch](https://www.al.com/resizer/v2/BDS3SABTFBAJPLJXI2NSTFDQ6I.jpg?auth=04fbf3bb8185a249d18e12748cd513ee981175b3d12ecde6ab8da00a3676213c&width=500&quality=90)

### Insider Trading Allegations

The drastic decline in value led to accusations of **insider trading** against Welch and her team. **Stephen Findeisen**, also known as **Coffeezilla**, criticized the launch during a conversation on X, calling it “one of the most miserable, horrible launches I’ve ever seen.” He claimed that **80 to 90 percent** of the **Hawk Tuah** supply was controlled by insiders or **snipers**, individuals who buy large amounts of a coin at launch.

Despite these accusations, Welch's team has denied any wrongdoing, stating they had not sold any tokens and attempted to mitigate sniper activities.

### The Meme Coin Phenomenon

Meme coins like **Hawk Tuah** are cryptocurrencies that leverage popular social media trends to gain traction. However, the volatility and risks associated with such coins can lead to rapid gains and equally swift losses, as seen in this case.

For more detailed insights, you can check out the discussion [here](https://cointelegraph.com/news/hawk-tuah-memecoin-dumps-90-percent-outrage-token-launch-insider).

Haliey Welch’s coin hit a market capitalization of nearly $500 million before quickly falling to $25 million.

Insider Trading Accusations Fly as Hawk Tuah Coin Crashes 95% Overnight

### The Rise of Bitcoin
Since Election Day, **Bitcoin’s value has surged nearly 50%**, recently breaking the **$100,000 price barrier**. This remarkable increase is fueled by discussions surrounding the establishment of a **strategic Bitcoin reserve** by the United States.

### Political Support for a Bitcoin Reserve
In July, President-elect **Donald Trump** pledged to create a “national Bitcoin stockpile.” Meanwhile, Senator **Cynthia Lummis** introduced a bill aimed at using existing government funds to acquire **1 million bitcoins**. Additionally, Congressman **Ro Khanna** supports utilizing the U.S.'s seized Bitcoin stash as a strategic reserve asset.

### Economic Benefits of a Bitcoin Reserve
Bipartisan enthusiasm for this initiative is rising, as leaders recognize that Bitcoin can serve the **national interest**. A strategic Bitcoin reserve could potentially **reduce the national debt** significantly while **strengthening the dollar** and enhancing economic leverage against **China and Russia**.

### Curbing the Deficit with Bitcoin
Bitcoin's long-term price trend shows consistent appreciation, making it an effective tool for addressing the deficit without raising taxes. **MicroStrategy CEO Michael Saylor** famously chose Bitcoin as his company’s primary treasury asset in 2020, transforming it from a stagnant corporation into a powerhouse with a market cap soaring from **$1.3 billion to $94.78 billion** in four years.

### A Bold Proposal from Senator Lummis
Senator Lummis’s proposal could cut the national debt in half over the next two decades without costing taxpayers anything. By reallocating a fraction of the U.S. government's gold reserves to purchase Bitcoin, the U.S. could position itself as a leader in the rapidly growing **digital monetary network**.

### Countering Economic Hostility
The benefits extend beyond debt reduction. A Bitcoin reserve could serve as a counterweight to the economic strategies of **China and Russia**, who are actively moving away from the dollar and exploring alternative currencies. The U.S. could leverage Bitcoin as a safeguard against **gold weaponization**.

### The Advantages of Bitcoin Over Gold
As Federal Reserve Chair **Jay Powell** pointed out, Bitcoin is not merely a competitor to the dollar but rather a competitor for gold. Bitcoin shares many attributes with gold—**durability, scarcity, and difficulty in mining**—while offering greater advantages such as **verifiability** and **speed of transfer**. These factors have significantly contributed to Bitcoin's price appreciation over the years.

### The Implications of U.S. Adoption
Being the first G20 nation to adopt Bitcoin as a reserve asset could catalyze a global trend among other countries. The strategic Bitcoin reserve could mark Bitcoin’s entry onto the global stage, potentially reversing the trend towards physical gold.

### Enhancing Confidence in the Dollar
A more diversified U.S. balance sheet would bolster the economy and enhance confidence in the dollar. Pairing a Bitcoin reserve with a strong strategy for **U.S. dollar-based stablecoins** could further solidify the dollar's position globally. This dual strategy would not only reinforce the dollar's strength but also respond effectively to the economic maneuvers of rival nations.

### Embracing the Future of Money
Money is a technology, and the future will favor nations that adopt new technologies to serve their national interests. The incoming Trump administration has the opportunity to embrace digital assets and create a strategic Bitcoin reserve to secure the U.S.'s economic future.

*Sam Lyman is the director of public policy for Riot Platforms and has previously served as chief speechwriter to Senator Orrin G. Hatch and the President and CEO of the US Chamber of Commerce.*

A Bitcoin reserve could both reduce the national debt and thwart attempts by U.S. rivals to create a competing currency.

Why the U.S. Needs a Strategic Bitcoin Reserve Now More Than Ever

### Bitcoin's Recent Decline

**Bitcoin** has recently slipped below the **$100,000** mark, erasing its previous gains. After reaching an all-time high of **$104,088**, the leading cryptocurrency saw a near **6%** pullback, pushing many altcoins down with it during a market-wide correction. Most altcoins within the top 20 experienced losses ranging from **1% to 5%** within a single day.

![Top 10 altcoins price change in 24 hours | Source: Crypto.news](https://crypto.news/app/uploads/2024/12/Screenshot-2024-12-06-at-5.05.41%E2%80%AFPM.png)

Analysts from **Crypto Finance** attribute Bitcoin's surge to **Fed Chair Jerome Powell's** remarks, which likened Bitcoin to gold rather than the US dollar.

### Altcoin Season: XRP and TRON's Potential

Amidst Bitcoin's decline, **XRP** and **TRON** have posted impressive gains, each exceeding **50%** over the past week. The **altcoin season index** indicates a strong performance for altcoins, with **75%** of the top 50 altcoins outperforming Bitcoin over the last **90 days**. The index currently sits at **86** on a scale of **0 to 100**.

![Altcoin season index | Source: Blockchaincenter](https://crypto.news/app/uploads/2024/12/Screenshot-2024-12-06-at-5.08.36%E2%80%AFPM.png)

**Tether's** dominance is reportedly at **3.91%**, suggesting that traders are moving capital from stablecoins into altcoins. A rising USDT dominance could indicate profit-taking or capital exiting from both Bitcoin and altcoins.

### On-Chain and Technical Analysis

Both XRP and TRON have seen a spike in **open interest** on derivatives exchanges, signaling increased trading activity. Additionally, the funding rate for both altcoins has remained positive, indicating a **bullish sentiment** among traders.

![Volume in XRP and TRON | Source: Santiment](https://crypto.news/app/uploads/2024/12/XRP-Ledger-XRP-17.35.46-06-Dec-2024.png)

### Price Forecasts

**XRP** is currently trading at **$2.3028**, facing resistance at **$2.5102**. Analysts suggest a potential rally that could aim for a **26%** increase, targeting **$2.9092**. Meanwhile, **TRON** is near support at **$0.3160**, with potential gains of **22.42%** targeting **$0.3881**.

![XRP/USDT daily price chart | Source: Crypto.news](https://crypto.news/app/uploads/2024/12/XRPUSDT_2024-12-06_17-50-37.png)

![TRX/USDT daily price chart | Source: Crypto.news](https://crypto.news/app/uploads/2024/12/TRXUSDT_2024-12-06_17-54-10.png)

### Strategic Considerations

Traders are advised to monitor Bitcoin's price closely, as significant fluctuations could impact altcoin performance. Recent declines in open interest for XRP and TRON may indicate reactions to Bitcoin's drop below **$100,000**.

Ripple (XRP) and TRON (TRX) posted over 50% weekly gains and the two altcoins could continue their climb in the altcoin season. As Bitcoin (BTC) slips under the $100,000 level, it dragged altcoins down with a market-wide correction on Friday. 

XRP and TRON Surge Over 50%: Can They Continue to Rally as Bitcoin Dips Below $100K?

Earlier this week, French Senator **Sylvie Vermeillet** proposed a controversial bill that aims to classify **Bitcoin** and other digital assets as **"unproductive"**, suggesting that they should be taxed similarly to luxury items and vacant properties. The proposed legislation would impose taxes on unrealized gains exceeding **€800,000** as part of the **2025 budget**.

Paris-based **Alice Stork**, founder of the Web3 public relations agency **ICL**, expressed her concerns to **Decrypt**, stating that a tax on unrealized gains feels **"out of touch"** with the inherent volatility of crypto markets. She questioned the fairness of taxing gains that have not been cashed out, fearing that such measures could drive **innovators** and **businesses** away from France.

So far, the proposal has passed a preliminary vote in the Senate and has received endorsement from the country’s **Finance Minister**, **Laurent Saint-Martin**, who claims that this change will create a more balanced taxation system for Bitcoin gains.

If enacted, French cryptocurrency holders will be required to report their foreign cryptocurrency holdings annually using the **Cerfa 3916-bis form**. Fines for non-compliance could range from **€750 to €1,500**.

**Sébastien Martin**, CEO of the French crypto risk management firm **RAID Square**, noted the political weight of Vermeillet, being a vice president of the Senate and a member of the **Parti Radical**, which supports President **Emmanuel Macron's** policies. 

This move by France follows a series of regulatory efforts concerning cryptocurrencies. Recent reports have indicated that France's **National Gaming Authority** is considering blocking **Polymarket**, a blockchain-based prediction market platform, due to compliance issues. Additionally, the exchange **ByBit** announced its exit from the French market due to evolving regulatory conditions stemming from the **MiCA** crypto legislation.

Moreover, France has faced criticism from privacy advocates following the arrest of **Telegram** founder **Pavel Durov** on multiple charges related to his platform. Critics have alleged that the arrest was politically motivated, a claim denied by President Macron.

A Web3 marketer told Decrypt a Bitcoin tax on unrealized gains is “worrying” and “feels pretty out of touch with how volatile crypto markets are.”

France's Bold Move: Taxing Bitcoin HODLers on Unrealized Gains

![XRP Logo](https://specials-images.forbesimg.com/imageserve/6752bc10536ed210142f8922/In-this-photo-illustration--a-XRP-logo-seen-displayed-on-a---/960x0.jpg?fit=scale)

The price of **Ripple’s cryptocurrency XRP** has surged over **300% in a month**, skyrocketing from **$0.22 to $2.37** since early 2021. This impressive rally has propelled XRP to become the **world’s fourth-largest cryptocurrency** with a market cap of around **$135 billion**, following Bitcoin, Ethereum, and Tether.

### The Ripple Effect of Political Changes

The surge in XRP mirrors trends across cryptocurrencies post-Trump's election, where optimism about a **crypto-friendly administration** has ignited unprecedented interest in digital assets. Trump’s statement about making the U.S. the **“crypto capital”** has contributed to Bitcoin crossing the **$100,000** mark for the first time, doubling from **$44,000** earlier this year.

### Ripple's Legal Battles and Court Rulings

Ripple, known for its **fast and low-cost international money transfers**, has faced significant legal challenges. In 2020, the **U.S. SEC** alleged that Ripple raised over **$1.3 billion** by selling XRP in an unregistered offering. However, a court ruling in 2023 stated that XRP is **not a security** when sold to the public on exchanges, though it remains classified as a security when sold to institutional investors. This led the SEC to pursue a **$2 billion fine**, but the court ultimately imposed a **$125 million penalty** instead.

### Political and Regulatory Landscape Shifts

Recent lawsuits against the SEC by state attorneys general and the DeFi Education Fund accuse the regulator of **overreach** in its actions against digital asset exchanges. As a result, it’s anticipated that the current SEC chair, **Gary Gensler**, will step down in January 2025, potentially leading to a more **crypto-friendly** successor.

### Future Growth and Innovations

XRP's growth trajectory appears promising, especially with the upcoming launch of the **RLUSD stablecoin**, which is pending approval. This stablecoin will be fully backed by cash, government treasury securities, and other cash equivalents, further enhancing Ripple's utility.

### Performance Comparison

Despite XRP's **1,000% rise** since early 2021, its returns have fluctuated: **278% in 2021**, **-59% in 2022**, and **81% in 2023**. Comparatively, the S&P 500 delivered **27% in 2021**, **-19% in 2022**, and **24% in 2023**, indicating that XRP underperformed the S&P in 2022. Consistent performance against the broader market has been challenging for both individual stocks and cryptocurrencies.

![XRP vs Trefis Portfolio](https://specials-images.forbesimg.com/imageserve/6752c0cb8973ae9ac2e93347/XRP-Return-Compared-With-Trefis-Reinforced-Portfolio/960x0.png?fit=scale)  
**XRP Return Compared With Trefis Reinforced Portfolio**

Investors are keenly observing these developments, as the future landscape for XRP and Ripple continues to evolve amidst political and regulatory changes.

The surge in XRP mirrors the trend seen across cryptocurrencies after Trump won the U.S. presidential elections, as hopes that the new administration will take a frien...

XRP's Meteoric Rise: Is This Just the Beginning of a New Crypto Era?

Staunch **Bitcoin (BTC)** critic **Peter Schiff** has raised eyebrows over financial analyst **Jim Cramer’s** bullish remarks on Bitcoin, which he likens to statements typically made at market tops.  

### What Happened  
Schiff took to X to express his skepticism regarding Cramer’s advocacy for Bitcoin after the cryptocurrency recently **surged past $100,000** for the first time. He tweeted:  
> CNBC's [@jimcramer](https://twitter.com/jimcramer) just proclaimed **#Bitcoin** a can't-lose investment. He said buying it is a no-brainer and compared it to trading on insider information. **These seem like the type of statements typically made at market tops!**  

Cramer celebrated this historic milestone on his popular show, **Mad Money**, but clarified that he was not suggesting that Bitcoin had reached its peak. He noted that he has been recommending Bitcoin for years, having first invested in September 2020 when it was around **$10,000**.  

Cramer also suggested that Bitcoin could serve as an alternative to gold, proposing that investors allocate **10% of their portfolios** to the asset.  

However, Schiff interpreted Cramer’s enthusiasm as a signal of a potential market top, echoing his prior skepticism. He previously dismissed the likelihood of Bitcoin ever hitting **$100,000** back in 2019, and upon its achievement, attributed it to **government interventions and political payoffs**.  

### Price Action  
In recent trading, Bitcoin experienced a flash crash to a low of **$91,990** before rebounding to **$97,710**, according to data from **Benzinga Pro**.  

As for Cramer, his reputation in financial circles includes the **"Inverse Cramer"** phenomenon, where traders believe that doing the opposite of his recommendations could yield profits, although this strategy lacks definitive proof.

Staunch Bitcoin (CRYPTO: BTC) critic Peter Schiff questioned financial analyst Jim Cramer&#8217;s bullish stance on the cryptocurrency on Thursday, likening it to remarks made at market tops.

Peter Schiff Calls Out Jim Cramer's Bitcoin Optimism Amid Price Slump – Is This a Market Top?

### **Bitcoin Shows Signs of Volatility Post $100K Milestone**  
Bitcoin (BTC) rebounds to **$97,000** after a volatile drop to **$90,500**, following its **$100K milestone** touched the previous day. The price surged past the six-figure mark, reaching a high of **$104,088**, then fell sharply but recovered to close above **$96,900**. As of now, BTC hovers around **$97,800**. The **Relative Strength Index (RSI)** on the daily chart reads **64**, indicating weak bullish momentum. If BTC continues to decline, it could retest the **$90,000** support level.  
![BTC/USDT daily chart](https://editorial.fxsstatic.com/miscelaneous/BTCUSDT_2024-12-06_08-09-51-638690550764958276.png)  
*BTC/USDT daily chart*  
However, if BTC maintains its upward momentum, it could reach its new all-time high of **$104,088**.  
  
### **Ethereum Bulls Eye the $4,000 Mark**  
Ethereum (ETH) maintains bullish momentum, holding above the weekly level of **$3,454**, suggesting a potential rally toward **$4,000**. The RSI indicator reads **70**, indicating bullish momentum is gaining traction. If the **$3,454** level holds, ETH could extend the rally to retest the psychologically important **$4,000** level.  
![ETH/USDT daily chart](https://editorial.fxsstatic.com/miscelaneous/ETHUSDT_2024-12-06_09-02-50-638690551500851801.png)  
*ETH/USDT daily chart*  
Conversely, if ETH declines below **$3,454**, it could face a pullback to **$3,335**.  
  
### **Ripple Bulls Show Signs of Exhaustion**  
Ripple (XRP) surged over **18%** earlier this week, reaching a six-year high of **$2.90**, but has since declined **17.6%**. Currently trading around **$2.31**, XRP may retest the **$1.96** support level if it continues to decline. The RSI stands at **72**, indicating overbought conditions and suggesting an increasing risk of a correction.  
![XRP/USDT daily chart](https://editorial.fxsstatic.com/miscelaneous/XRPUSDT_2024-12-06_09-12-21-638690552149558538.png)  
*XRP/USDT daily chart*  
However, if XRP recovers, it could target the **$3.00** level again.

Bitcoin (BTC) rebounds to $97,000 on Friday after a volatile drop to $90,500, following its $100K milestone the day before. 

Bitcoin and US Stocks Surge: What's Driving the Market Rebound?

Summary:

Market Turnaround

Possible Factors Behind the Movement

Comments

Subscribe our Newsletter

BitcoinToday.app

Other Latest News

Insider Trading Accusations Fly as Hawk Tuah Coin Crashes 95% Overnight

Why the U.S. Needs a Strategic Bitcoin Reserve Now More Than Ever

XRP and TRON Surge Over 50%: Can They Continue to Rally as Bitcoin Dips Below $100K?

France's Bold Move: Taxing Bitcoin HODLers on Unrealized Gains

XRP's Meteoric Rise: Is This Just the Beginning of a New Crypto Era?

Peter Schiff Calls Out Jim Cramer's Bitcoin Optimism Amid Price Slump – Is This a Market Top?

Bitcoin Surges Past $100K: What’s Next for BTC, ETH, and XRP?

Other Latest News

Insider Trading Accusations Fly as Hawk Tuah Coin Crashes 95% Overnight

Why the U.S. Needs a Strategic Bitcoin Reserve Now More Than Ever

XRP and TRON Surge Over 50%: Can They Continue to Rally as Bitcoin Dips Below $100K?

France's Bold Move: Taxing Bitcoin HODLers on Unrealized Gains

XRP's Meteoric Rise: Is This Just the Beginning of a New Crypto Era?

Peter Schiff Calls Out Jim Cramer's Bitcoin Optimism Amid Price Slump – Is This a Market Top?

Bitcoin Surges Past $100K: What’s Next for BTC, ETH, and XRP?