U.S. Treasury liquidity injections fueled a market-wide rally; XRP surged 10%, allowing holders to easily earn $12,000 daily

On Thursday, XRP rose 9.8% to $1.10, outperforming a broader market rally driven largely by macro liquidity injections from the U.S. Treasury. A massive short squeeze and a rotation of capital into the regulated digital commodities sector further fueled XRP’s gains.

The primary driver of the rally was the U.S. Treasury Department’s announcement that, effective September 9, it would double the maximum size of its long-term bond buybacks to $4 billion per operation—news that rapidly propelled a broad market rise.

This unprecedented intervention pulled U.S. Treasury yields down from 19-year highs, making risk assets like cryptocurrencies more attractive and sparking a broad market rally.

XRP’s rise was primarily driven by beta, closely mirroring Bitcoin’s 7.25% gain and the 7.4% increase across the broader cryptocurrency market, rather than being triggered by a coin-specific event.