XRP News Today: Ripple Case Hits Four Years; BTC Hovers Below $95k

SEC vs Ripple Case Reaches Four-Year Milestone

This week marks the fourth anniversary of the SEC filing its lawsuit against Ripple, Chris Larsen, and Brad Garlinghouse. XRP investors have had a tumultuous time at the expense of the SEC v Ripple case. Since December 2020, XRP has given up its number two ranking by market cap, tumbling to a March 2020 low of $0.1009.

XRP has since rallied to a December 2024 high of $2.9070. Trump’s re-election and pro-crypto agenda have raised hopes for an end to the Ripple case. However, recent SEC activity suggests the agency will pursue its appeal by filing its opening brief on or before the January 15 deadline.

SEC Chair Gary Gensler has strengthened the agency’s enforcement division, promoting seasoned crypto litigators to Senior Officer positions. The SEC Chair made the promotions before his departure on January 20, just days after the deadline for the SEC to file its opening brief.

The four-year anniversary could prove significant as former SEC Chair Jay Clayton filed the Ripple lawsuit in his final days as SEC Chair. Chair Gensler could repeat history by filing the opening brief.

SEC Appeal Uncertainty Remains an XRP Headwind

Uncertainty about the SEC’s plans has contributed to an XRP pullback from December’s high. Nevertheless, the outlook remains promising. Legal experts and a former SEC division chief expect incoming SEC Chair Paul Atkins to reverse course on the SEC’s crypto-enforcement efforts.

However, if the SEC files its opening brief, Paul Atkins would face the task of withdrawing the appeal. The process could take time, potentially leaving XRP in limbo. Internal SEC rules mandate that an agency vote, not the Chair alone, determines the appeal’s continuation or withdrawal.

One potential curveball for the SEC could be the Office of Inspector General’s (OIG) findings in an investigation into alleged crypto conflicts of interest within the SEC. If the OIG finds the SEC is in a conflict of interest, the agency may face intense political pressure to withdraw its appeal. This would set the Programmatic Sales of XRP ruling as a crucial legal precedent.

In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test. This legal precedent could end the SEC’s legal cases against crypto firms supporting the secondary sales of crypto.

XRP Price Trends: Appeal Plans Crucial

On Monday, December 23, XRP gained 2.62%, reversing Sunday’s 1.58% loss, closing at $2.2587. XRP outperformed the broader crypto market, which advanced by 1.57%, bringing the total market cap to $3.250 trillion.

XRP has moved sideways in recent sessions as investors await news of the SEC’s plans to appeal rulings in the Ripple case. If the agency files its opening brief, XRP could face intense selling pressure, potentially dragging XRP below $1.50. Conversely, its withdrawal may drive XRP toward the January 2018 all-time high of $3.5505.

Explore exclusive XRP price predictions here.

BTC-Spot-ETF Market Outflow Impact on Bitcoin Demand

On Monday, bitcoin (BTC) extended its losing streak to three sessions as investors continued to recoil from Wednesday’s hawkish Fed economic projections. Notably, the hawkish Fed rate path outlook impacted demand for US BTC-spot ETFs, pulling BTC back from the crucial $95k level.

According to Farside Investors:

• On Monday, Fidelity Wise Origin Bitcoin Fund (FBTC) saw net outflows of $146 million.
• Grayscale Bitcoin Trust (GBTC) had net outflows of $38.4 million.

Excluding flow data for BlackRock’s (BLK) iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market reported net outflows of $258.2 million. Notably, the US BTC-spot ETF market faces its longest outflow streak since early October. The latest flow trend underscores the Fed’s influence on BTC demand.

MicroStrategy Counters US-BTC Spot ETF Outflows

Meanwhile, MicroStrategy (MSTR) founder and chairman Michael Saylor announced the firm’s latest BTC purchase, stating,

“MicroStrategy has acquired 5,262 BTC for ~ $561 million at ~ $106,662 per bitcoin and has achieved BTC Yield of 47.4% QTD and 73.7% YTD. As of 12/22/2024, we hodl 444,262 BTC acquired for ~ $27.7 billion at ~ $62,257 per bitcoin.”

The acquisition coincided with three days of BTC outflows, totaling $1,207 million, leaving the supply-demand balance in deficit. Notably, the BTC purchase followed Saylor’s latest push for a strategic bitcoin reserve (SBR).

On Sunday, Saylor stated,

“A strategic digital asset policy can strengthen the US dollar, neutralize the national debt, and position America as the global leader in the 21st-century digital economy—empowering millions of businesses, driving growth, and creating trillions in value.”

Bitcoin Price Outlook

On Monday, December 23, BTC slipped by 0.50%, following Sunday’s 2.26% decline, closing at $94,831.

Near-term BTC price trends will remain hinged on US BTC-spot ETF flows, SBR-related news, and Thursday’s jobless claims data.

Hotter-than-expected US labor market data would support a more hawkish Fed rate path, affecting BTC-spot ETF market flows. Spot ETF market outflows could impact BTC demand, potentially dragging BTC toward the $90,742 support level.

However, an unexpected increase in jobless claims could boost bets on a Q1 2025 Fed rate cut. A more dovish Fed rate path and progress toward an SBR may drive spot ETF inflows and BTC toward $100k.

Market Outlook for XRP and BTC

Both XRP and BTC face pivotal moments in late 2024. XRP’s path depends on the SEC’s next steps and Ripple’s ongoing legal battles, while Bitcoin’s trajectory remains tied to ETF flows and macroeconomic trends. As US policy on digital assets evolves, the crypto landscape is poised for significant shifts. Stay updated with our latest market analysis and expert insights here.