XRP News Today: Bybit and US Data Jolt Markets; BTC Drops Below $95K

SEC vs. Coinbase: Case Dismissed

On Friday, February 21, the SEC’s war on crypto took another turn in favor of the US digital asset industry. The SEC agreed to dismiss its case against Coinbase (COIN). Coinbase CEO Brian Armstrong commented:

“After years of litigation, millions of your taxpayer dollars spent, and irreparable harm done to the country, we reached an agreement with SEC staff to dismiss their litigation against Coinbase. Once approved by the Commission (which we’re told to expect next week) this would be a full dismissal, with $0 in fines paid and zero changes to our business.”

The crypto community reacted to the news, with Ripple CEO Brad Garlinghouse saying:

“Suffice it to say (as I know there are lots of impatient people, including me!), this SEC has demonstrated a clear interest in moving on quickly (!) from the failed regulation by enforcement policies of the last Administration.”

Pro-crypto lawyer Jeremy Hogan offered further details on the terms of the dismissal:

“The Coinbase Case was Dismissed WITH Prejudice – meaning it cannot be refiled later; not even a settlement agreement with some minor concessions!”

SEC vs. Ripple: Is an Appeal Withdrawal Imminent?

Friday’s news fueled speculation about the SEC’s pending appeal against the Programmatic Sales of XRP ruling in the Ripple case.

Former SEC Office of Internet Enforcement Chief John Reed Stark reacted:

“As Predicted, Like the Rest of the SEC’s Crypto-Enforcement Program, the SEC Coinbase Case is Dead. The SEC Ripple Appeal is Obviously Next on the Chopping Block.”

With no allegations of fraud in the SEC v Coinbase, the SEC’s decision to drop the case highlighted the agency’s shifting priorities under Acting Chair Mark Uyeda and Commissioner Hester Peirce’s Crypto Task Force. Friday’s move also showed that Acting Chain Uyeda isn’t waiting for Paul Atkins’ confirmation to end the agency’s assault on cryptos.

Bybit Hack Overshadows Coinbase Dismissal

Despite the Coinbase victory, the broader crypto market remained under pressure due to a major security breach at Bybit. The exchange announced the security breach on X (formerly Twitter):

“Bybit detected unauthorized activity involving one of our ETH cold wallets. The incident occurred when our ETH multisig cold wallet executed a transfer to our warm wallet. Unfortunately, this transaction was manipulated through a sophisticated attack that masked the signing interface, displaying the correct address while altering the underlying smart contract logic. As a result, the attacker was able to gain control of the affected ETH cold wallet and transfer its holdings to an unidentified address.”

Arkham Intelligence shared a list of the Bybit hacker’s wallets, which totaled 53 wallets, holding $1.37 billion of ETH. The crypto community can track the Bybit hacker on Arkham.

Arkham created and funded a bounty, in response to the hack, to help identify the hacker or hackers. Zachxbt submitted definitive evidence that North Korea’s Lazarus Group was behind the hack.

The Lazarus Group is linked to North Korea’s intelligence agency, the Reconnaissance General Bureau, infamous for some sizeable crypto exploits, hacks, and scams. North Korea funds its missile program with stolen crypto, potentially making Friday’s hack a US national security concern.

Bybit CEO Ben Zhou attempted to calm the crypto market, assuring that the exchange remains solvent and ‘all of clients assets are 1 to 1 backed, we can cover the loss.

News of the hack sent shockwaves across the crypto market, with XRP tumbling to a Friday low of $2.5072, reflecting investor fears of another crypto exchange collapse.

XRP Price Trends: SEC Appeal in Focus

On Friday, February 21, XRP slid by 4.40%, following Thursday’s 1.75% loss, closing at $2.5719. XRP saw heavier losses than the broader crypto market, which dropped 2.36% to a total market cap of $3.11 trillion

As the dust settles from the Bybit hack, traders must consider several key market drivers going into the weekend.

• Bybit Updates: Confirmation of solvency or the recovery of stolen assets could support a rebound, while concerns over withdrawal freezes may add downside pressure.
• SEC Appeal Decision: A withdrawal of the SEC’s appeal could push XRP beyond its all-time high of $3.5505, while a continued legal battle may keep prices below $1.50.
• ETF Developments: Approval of an XRP-spot ETF could drive institutional inflows, potentially propelling prices toward $5.

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

Bitcoin Drops Below $95K on Bybit Hack

Bitcoin (BTC) also faced selling pressure, sliding to a Friday low of $94,829 before returning to $96K. While the SEC’s evolving stance on crypto regulation is bullish, security concerns and regulatory scrutiny following the Bybit hack could weigh on market sentiment.

US Economic Indicators Add to the Gloomy Market Mood

While the Bybit hack stole the crypto news headlines, US economic indicators added to the bearish market sentiment. The S&P Global Services PMI fell from 52.9 in January to 49.7 in February, spooking global markets. Accounting for around 80% of the US economy, the drop below 50 (neutral) sparked recession fears. US consumer sentiment also dived, while inflation expectations surged.

US markets tumbled as investors reacted to the data, with US tariffs another market headwind. The Nasdaq Composite Index slid by 2.20% on February 21, while the Dow and S&P 500 posted losses of 1.69% and 1.71%, respectively.

US BTC-Spot ETF Market Reflects Market Mood

Friday’s Bybit hack and concerns about the US economy impacted BTC-spot ETF demand. According to Farside investors, key flows on February 21 included:

• Grayscale Bitcoin Trust (GBTC) had net outflows of $60.1 million.
• Bitwise BTC ETF (BITB) reported net outflows of $16.6 million.
• Fidelity Wise Origin Bitcoin Fund (FBTC) saw net outflows of $12.5 million.

Excluding iShares Bitcoin Trust (IBIT) the US BTC-spot ETF market reported total net outflows of $84.5 million, extending the outflow streak to four sessions.

Weakening ETF demand could impact the supply-demand balance, potentially influencing broader investor sentiment.

Bitcoin Price Outlook

On February 21, BTC declined by 2.10%, reversing Thursday’s 1.93% gain, closing at $96,185.

Heading into the weekend, traders have several key developments to monitor, including US tariff developments and Bybit-related news.

Key BTC Price Scenarios:

• Bearish: Rising tariff threats, government resistance to a US Strategic Bitcoin Reserve (SBR), and Bybit solvency concerns could drag BTC toward $90,000.
• Bullish: Easing trade tensions, progress toward a US SBR, and Bybit solvency affirmations may push BTC toward its all-time high of $109,312.

Market Outlook: Regulatory Developments Remain Key

Investors should closely watch:

1. The SEC’s decision on its Ripple case appeal.
2. US tariff policies and inflationary impact
3. Progress on the Strategic Bitcoin Reserve (SBR).
4. BTC-spot ETF market flows and institutional adoption.
5. Bybit solvency updates.

Will the SEC withdraw its Ripple appeal? Will the US government embrace a Bitcoin reserve strategy? Keep an eye out for our updates and the latest insights here.