XRP News Today: Appeal Uncertainty Weighs on XRP Price Action; BTC Slides Below $80K

SEC Closed Meeting and the Ripple Case

On February 27, the SEC held its weekly closed meeting, fueling speculation about an appeal withdrawal in the Ripple case. However, the SEC offered no updates on its appeal strategy, diminishing hopes of an imminent withdrawal of its challenge to the ruling on XRP’s programmatic sales.

The SEC’s silence was in stark contrast to last week when the agency dismissed the Coinbase case (COIN) after the February 20 closed meeting.

Amicus Curiae attorney John E. Deaton remarked on the agency’s silence regarding the appeal:

“As Amici counsel and on behalf of 75K XRP holders, Hester Peirce, David Sachs, Bo Hines, Mark Uyeda, when Ripple?”

Deaton made the comments after another SEC vs. crypto case dismissal. On Friday, a Judge dismissed the SEC’s case against Richard J. Schuler, a.k.a Richard Heart, Hex, Pulsechain, and pulsex. However, unlike the SEC’s recent legal maneuvers, the judge ruled in favor of Richard Heart’s motion to dismiss the charges against him.

Despite these legal developments, XRP continues to face downward pressure. The token has fallen sharply from its January 16 high of $3.3999 as the SEC potentially awaits Paul Atkins’ confirmation before addressing the Ripple case.

Notably, XRP soared 45.85% in January 2024 in hopes of the SEC withdrawing its appeal and approving XRP-spot ETF applications. However, the lack of movement in the case left XRP down 29.31% in February 2024.

US Lawmakers Assess Digital Assets Under the Howey Test

As investors await updates on the Ripple case, US lawmakers are weighing in on whether cryptocurrencies qualify as securities. Senator Cynthia Lummis remarked on a recent Capitol Hill hearing, stating:

“Here’s what we learned in yesterday’s hearing:

• Most digital assets are not legally securities under the Howey test.

• The United States is behind other countries in creating laws for digital assets.

• Stablecoins will bring our payment system into the 21st century.”

Pro-crypto lawyer Bill Morgan reacted to Lummis’ comments, noting:

“So you agree Judge Torres was correct in finding XRP itself is not a security in SEC v Ripple.”

With no fraud allegations in the Ripple case, the SEC may face growing pressure to withdraw its appeal.

XRP Price Trends: Appeal Uncertainty Leaves XRP in Limbo

On Friday, February 28, XRP declined by 2.36%, following Thursday’s 0.05% loss to close at $2.1462. Significantly, XRP briefly tumbled to a session low of $1.9521 before rebounding. However, XRP underperformed the broader market, which fell 0.59% to a total crypto market cap of $2.74 trillion.

XRP’s price trajectory will continue to depend on two key factors:

• SEC Appeal Strategy: A dropped appeal could propel XRP past its all-time high of $3.5505, while ongoing legal uncertainty may push prices below $1.50.
• XRP-Spot ETF Developments: Approval of an XRP-spot ETF could attract institutional inflows and drive XRP toward $5.

Read expert analysis on what could drive XRP to new highs here.

US Inflation Boosts Fed Rate Cut Bets and BTC Demand

On February 28, the US Personal Income and Outlays Report fueled demand for risk assets, including BTC. The Core PCE Price Index increased by 2.6% year-on-year in January, down from 2.9% in December. As the Fed’s preferred inflation gauge, the January drop fueled speculation about an H1 2025 Fed rate cut.

According to the CME FedWatch Tool, the chances of a June Fed rate cut jumped from 69.9% to 80.4% on February 28. The shift in sentiment supported BTC’s rebound from a session low of $78,180.

US BTC-Spot ETF Market Ends Eight-Day Outflow Streak

The US inflation data and shifting market sentiment toward the Fed rate path highlighted the US BTC-spot ETF market’s sensitivity to US economic data and Fed policy.

On February 28, BTC-spot ETF issuers looked set to break an eight-day losing streak, offering BTC much-needed support. According to Farside Investors:

• ARK 21Shares Bitcoin ETF (ARKB) had net inflows of $193.7 million.
• Fidelity Wise Origin Bitcoin Fund (FBTC) saw net inflows of $176 million.
• Bitwise BTC ETF (BITB) and Grayscale BTC Mini Trust also reported net inflows.

Excluding BlackRock’s (BLK) iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market reported net inflows of $338.9 million on February 28.

BTC-spot ETF market flows remain crucial for investor sentiment and BTC’s supply-demand dynamics.

Market intelligence platform Santiment remarked on BTC sentiment trends:

“As Bitcoin sits in the mid-$80K’s, this chart measures the frequency of mentions of $70K-$75K (lower than BTC’s current levels) and $90K-$95K (higher than BTC’s current levels). As we can see in the screenshot, when traders are predicting Bitcoin is going higher, crypto markets go lower. When traders are predicting Bitcoin is going lower, crypto markets go lower.”

Bitcoin Price Outlook: Key Scenarios

On February 28, BTC dipped 0.35%, partially reversing Thursday’s 0.63% gain to close at $84,363.

While US inflation figures supported a recovery from sub-$80K levels, President Trump’s tariff plans remain a headwind. Higher tariffs could drive US import prices higher, potentially stoking inflation and derailing Fed rate cut bets, impacting risk assets.

Investors should also consider US Strategic Bitcoin Reserve (SBR)-related updates. BTC could see a significant surge in demand if lawmakers pass the Bitcoin Act. Senator Lummis introduced the bill in late 2024, proposing the US government purchase one million BTC over five years, with a 20-year holding period.

Potential price scenarios:

• Bearish Scenario: Trade tensions, strong US economic data, a hawkish Fed, and resistance to a US SBR could push BTC below $75,000.
• Bullish Scenario: Easing trade tensions, weaker economic data, dovish Fed signals, and progress on the SBR could send BTC toward its all-time high of $109,312.

Market Outlook: Key Catalysts to Watch

Several key factors will influence the market’s next moves:

1. The SEC’s decision on its Ripple appeal.
2. US tariff policies and inflation trends.
3. US economic data and Fed policy shifts.
4. Progress on a US Strategic Bitcoin Reserve.
5. BTC-spot ETF developments and institutional activity.

If the SEC withdraws its appeal in the Ripple case, it could trigger a broad crypto market rally. Meanwhile, uncertainty surrounding a US Bitcoin Reserve remains a potential wildcard for institutional adoption.

Stay updated with our latest insights here.