XRP Hits Seven-Year High

CRYPTO
XRP Hits Seven-Year High

Ripple’s XRP has soared over 40% in 24 hours, reaching $2.80—the highest in seven years—while becoming the third-largest cryptocurrency by market capitalization. This milestone, overtaking Solana, USDT, and Binance Coin, coincides with a wave of crypto-friendly sentiment in Washington following Donald Trump’s presidential election victory.

XRP’s market cap now stands at $156 billion, buoyed by $120 billion in new investment. The rally comes amid easing regulatory headwinds, with Securities and Exchange Commission (SEC) Chair Gary Gensler announcing his resignation. Gensler’s departure signals a potential shift in the SEC’s stance on crypto, with experts predicting that ongoing lawsuits, including the SEC’s case against Ripple, may soon be dropped.

Adding to the optimism, Ripple’s long-anticipated stablecoin RLUSD is reportedly near regulatory approval in New York, and speculation is mounting about an XRP exchange-traded fund. As Trump positions the U.S. as a global crypto hub, the broader market is rallying, with $1.2 trillion in growth since Election Day.

FINANCE
Musk’s Record Payout Overturned

Elon Musk’s record-breaking Tesla pay package, initially valued at $2.6 billion and growing to $101.5 billion, has been rejected again by Delaware Chancery Court Judge Kathaleen St. J. McCormick. Despite shareholder approval during Tesla’s June 13 annual meeting, the judge maintained her January ruling, citing excessive board influence from Musk when the package was adopted in 2018.

The ruling, which nullifies the largest compensation plan ever granted to a U.S. corporate executive, could significantly impact Musk's wealth and his companies’ futures if upheld on appeal. However, even without the payout, Musk remains the world’s richest person, with his net worth recently hitting an all-time high following Tesla’s stock rally and new funding for his artificial intelligence startup.

Musk’s business empire has seen surging valuations since Donald Trump’s election win, which spotlighted Musk’s influence as one of Trump’s favored allies. Tesla and its board declined to comment on the ruling.

FINANCE
JPMorgan Predicts Year-End Rally

JPMorgan’s trading desk predicts the S&P 500 could climb to between 6,200 and 6,300 by the end of December, representing a 3-4% gain from its current level near 6,032. Despite a record-setting rally, analysts remain optimistic, citing a supportive Federal Reserve, robust earnings growth, and favorable macroeconomic conditions.

“We remain tactically bullish into year-end,” wrote Andrew Tyler, JPMorgan’s Head of Global Market Intelligence, in a client note. Tyler’s team recommends tilting toward value and cyclical stocks, including banks, automakers, and small-caps, while maintaining positions in tech giants like the "Magnificent Seven," semiconductors, and data centers.

Historical trends also support the forecast. December and early January historically deliver strong equity returns, averaging 2.6% over this period since 1928, according to Goldman Sachs. While valuations are high—trading at 22 times forward earnings—bullish sentiment persists. Wall Street forecasts for 2025 see further gains, with some projecting the index could surpass 7,000 in the near future.

Word of the day
Eschew

To eschew something is to avoid it, especially because you do not think it is right, proper, or practical.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.