XRP rallied up to 67 percent this week, clearing $1.60 during intraday trading on Aug. 21—its best weekly performance since November 2024.
The catalyst: the U.S. Treasury Department's expanded long-term bond buyback program, which triggered expectations for increased market liquidity and curve management. Bernstein analysts identified the program as a direct liquidity catalyst for crypto markets, with the buyback mechanics designed to influence bond yields and ripple through broader asset valuations.
The move hit hard. XRP's surge wiped out $1.4 billion in short positions, triggering a liquidation cascade that further accelerated the upside. Traders covering leveraged bets against the asset added fuel to the rally as price crossed the $1.40 threshold for the first time in months before pushing past $1.60.
Not everyone is convinced. MEXC Research pushed back, calling the rally "premature" and arguing that markets are giving too much credit to the Treasury intervention. The counter-narrative signals caution despite immediate price action.
