XRP News Today: BTC Hits $91k; Will SEC Appeal Drive XRP Below $1.50?

XRP Faces Pressure as SEC Appeal Deadline Looms: What’s Next?

On Monday, December 30, the SEC v Ripple case remained the focal point as the January 15 deadline for the SEC’s appeal-related opening brief approaches. The appeal challenges the crucial Programmatic Sales of XRP ruling. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test.

The July 2023 ruling led to US crypto exchanges relisting XRP, driving demand for the token. However, Trump’s election win and pro-crypto agenda were the key catalysts to XRP’s recent climb to the top 3 by market cap.

Trump nominated former SEC Commissioner Paul Atkins as the next SEC Chair, with Democrats Chair Gary Gensler and Commissioner Jaime Lizarraga leaving the agency in January. Following Commissioner Caroline Crenshaw’s failed renomination vote, a Republican-led SEC could shift its stance on legal battles against Ripple and other crypto firms, including Coinbase (COIN).

Internal SEC rules mandate that an agency vote, not the Chair alone, determines the appeal’s continuation or withdrawal.

However, the increased likelihood of the SEC filing its opening brief has fueled uncertainty, impacting XRP demand.

Will OIG Findings Influence the Ripple Appeal?

Fox Business journalist Eleanor Terrett recently filed a Freedom of Information Act (FOIA) request. The FOIA pertained to the outcome of an Office of Inspector General (OIG) investigation into potential crypto-related conflicts of interest within the SEC. The OIG has reportedly concluded its investigation.

The OIG report could highlight senior SEC officials promoting ethereum (ETH) at the expense of Ripple and XRP. William Hinman is likely a central figure in the investigation and was a focal point in the Ripple case.

In 2018, Bill Hinman declared that bitcoin (BTC) and ETH were not securities. The contentious issue with the speech related to Hinman’s connection with the legal firm Simpson Thacher, which is part of a group that promotes Enterprise Ethereum.

Empower Oversight, a government whistleblower, alleged Hinman received millions of dollars from Simpson Thacher while working at the SEC. Hinman returned to Simpson Thacher after leaving the agency.

If the OIG investigation finds evidence of crypto-related conflicts of interest, the SEC could expedite a vote to withdraw its Ripple appeal. Court documents suggest that Hinman disregarded SEC Ethics Division’s warnings to cease meeting with his former employer.

XRP Price Trends: Will XRP Drop to $1.5 or Rebound?

On Monday, December 30, XRP declined by 1.76%, following Sunday’s 4.08% slide to close at $2.0563. Significantly, the token dropped below $2 for the third time since climbing to a 2024 high of $2.9070. Uncertainty about the SEC’s appeal remained an XRP headwind.

XRP underperformed the broader market, which dropped by 0.62%, underscoring the weight of the SEC’s looming filing.

Near-term trends depend on the SEC’s appeal. A well-crafted opening brief could drive XRP below $1.50, while a withdrawal might drive the token beyond the December 3 high of $2.9070.

Unlock Exclusive XRP Price Insights: Discover what the SEC’s next move could mean for XRP’s future. Don’t miss our expert analysis here – read now!

Bitcoin-Spot ETF Outflows Highlight Market Sentiment

Meanwhile, BTC continued facing pressure as investors considered the prospects of a Strategic Bitcoin Reserve.

On Friday, December 27, the US BTC-spot ETF market reported net outflows of $287.9 million. On Monday, outflows could continue as investors take profits. According to Farside Investors:

• Fidelity Wise Origin Bitcoin Fund (FBTC) saw net outflows of $155 million on Monday.
• Grayscale Bitcoin Trust (GBTC) reported net outflows of $134.5 million.
• Five of the eleven issuers registered net outflows, impacting BTC demand.

Excluding BlackRock’s (BLK) iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market reported net outflows of $379 million.

While recent inflow trends have weighed on BTC demand, it has been an impressive first year for the BTC-spot ETF market, with net inflows of $35,277 million. IBIT has been the market’s anchor, with net inflows of $37,308 million, tilting the supply-demand balance firmly in BTC’s favor.

ETF Store President Nate Geraci summed up IBIT’s influence on BTC trends, quoting Bloomberg Intelligence ETF Analyst James Seyffart:

“IBIT’s growth is unprecedented. It’s the fastest ETF to reach most milestones, faster than any other ETF in any asset class.”

Bitcoin Price Outlook

On Monday, December 30, BTC fell 0.91%, following Sunday’s 1.69% loss to close at $92,625. Significantly, BTC dropped below $92k for the first time since its record high of $108,231.

Near-term BTC price action depends on US BTC-spot ETF market flow trends, sentiment toward the Fed rate path, and strategic bitcoin reserve (SBR) developments.

Further BTC-spot ETF outflows, a hawkish Fed, and a US government BTC sale could pull BTC below the $90,742 support level. Conversely, BTC-spot ETF market inflows, support for a Q1 2025 Fed rate cut, and progress on SBR discussions may drive BTC toward $100k.

Market Outlook for XRP and BTC

As 2024 ends, XRP and BTC stand at a pivotal crossroads. Regulatory developments, particularly the SEC’s Ripple appeal and ETF market trends, could redefine investor sentiment and market dynamics. Macroeconomic factors, including Federal Reserve policy and global regulatory shifts, will remain key drivers influencing the crypto market

Stay informed with our expert analysis here.