XRP News Today: Ripple Execs Meet Trump as SEC Appeal Looms; BTC Drops to $97K

Ripple Executives Meet Donald Trump: A Strategic Move Amid Legal Uncertainty

Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty spotlight XRP on Tuesday, January 7. Garlinghouse shared a picture of the Ripple senior executives with President-elect Donald Trump, saying,

“Great dinner last night with Donald Trump and Stuart Alderoty. Strong start to 2025!”

Pro-crypto lawyer Bill Morgan remarked on the dinner, saying,

“The inauguration XRP donation at work. Love to be a fly on the wall during their discussion.”

The dinner came on the eve of a crucial SEC vs. Ripple case deadline. The SEC must file its appeal-related opening brief by January 15 if it plans to challenge the 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 Summary Judgment and the Final Judgment enabled US crypto exchanges to relist XRP, fueling adoption. Additionally, the rulings supported Ripple’s US expansion efforts, including the launch of its RLUSD stablecoin.

It is unclear whether the Ripple case was a talking point. Uncertainty about the SEC’s next steps in the Ripple case remains an XRP headwind. However, markets expect incoming SEC Chair Paul Atkins and Republican Party-appointed Commissioners to reverse course on the agency’s crypto-enforcement efforts.

Ripple’s Legal Challenges and XRP Volatility

While the markets expect the SEC to withdraw the appeal eventually, SEC Chair Gensler may file the opening brief by next week’s deadline. Chair Gensler recently strengthened the SEC’s litigation team by promoting seasoned crypto litigators to Senior Officer positions, suggesting an intent to proceed.

XRP could face increased volatility if the SEC files its opening brief. Incoming Chair Paul Atkins would need the Commissioners’ support to withdraw the appeal, allowing the agency’s litigators to continue challenging the rulings in the case. Internal SEC rules mandate that an agency vote, not the Chair alone, determines the appeal’s continuation or withdrawal.

Amicus Curiae attorney John E. Deaton recently shared his views on the agency’s chances of overturning the Programmatic Sales of XRP ruling, stating,

“Appealing the Ripple ruling is a fool’s errand and I think Paul Atkins will see it that way.”

XRP Price Trends

On Tuesday, January 7, XRP tumbled by 6.17%, reversing Monday’s 0.92% gain to close at $2.2713. Significantly, XRP underperformed the broader crypto market, which slid by 5.80%, taking the total market cap to $3.310 trillion. While the broader market retreated in response to US economic data, the SEC appeal threat added to the losses.

XRP price trends hinge on whether the SEC files its appeal-related opening brief. A filing could pull XRP below $2, potentially dropping to $0.50 if Ripple loses at the Second Circuit. Conversely, withdrawal could drive XRP past its 2018 record high of $3.5505.

Explore our expert analysis here on the SEC’s next move and its implications for XRP’s future.

Bitcoin Drops Below $100K as US Data Hits Fed Rate Cut Bets

Meanwhile, bitcoin (BTC) also suffered a setback on January 7. US economic data reduced bets on a May Fed rate cut. The all-important ISM Services PMI increased from 52.1 in November to 54.1 in December, signaling a pickup in economic momentum.

Accounting for around 80% of the US economy, December’s data suggested the Fed could keep interest rates higher for longer. A more hawkish Fed rate path would keep borrowing costs elevated for longer, weighing on demand for riskier assets.

US labor market data also impacted sentiment toward the Fed rate path. JOLTS job openings unexpectedly increased from 7.839 million in October to 8.098 million in November. Rising job openings signal a tight labor market, supporting wage growth and consumer spending. Upward consumer spending trends may fuel demand-driven inflation.

Notably, BTC reacted to the data, sliding to a session low of $96,203 before steadying.

US BTC-Spot ETF Market Flows: What a Difference a Day Makes!

On Monday, January 6, the US BTC-spot ETF market reported net inflows of $979 million, driving BTC to a January 7 high of $102,669. However, Tuesday’s upbeat US economic indicators triggered fresh outflows, contributing to BTC’s drop below $100k. According to Farside Investors:

• ARK 21Shares Bitcoin ETF (ARKB) had net outflows of $213 million on January 7.
• Grayscale Bitcoin Trust (GBTC) saw net outflows of $125 million.
• Bitwise Bitcoin ETF (BITB) and Fidelity Wise Origin Bitcoin Fund (FBTC) reported net outflows of $114 million and $86 million, respectively.

Excluding flow data for BlackRock’s (BLK) iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market had net outflows of $544 million on January 7. Notably, five issuers registered net outflows, underscoring the influence of flows on BTC price trends.

Bitcoin Price Outlook

On Tuesday, January 7, BTC slid by 5.10%, reversing Monday’s 3.98% gain to close at $97,019. Significantly, the sell-off ended BTC’s seven-day winning streak.

BTC’s near-term trends will hinge on US labor market data, Strategic Bitcoin Reserve (SBR) developments, and BTC-spot ETF market flow trends. More upbeat US data could sink bets on an H1 2025 Fed rate cut, potentially pulling BTC below $95k. Conversely, investor bets on a March Fed rate cut could drive BTC to new highs.

However, progress toward a US SBR could be crucial for BTC to break new ground.

Market Outlook for XRP and BTC

XRP and BTC face heightened volatility amid regulatory developments and shifting macroeconomic trends. XRP’s trajectory hinges on the SEC’s decision to appeal, while BTC’s future will depend on labor market data, ETF flows, and the Fed’s monetary policy.

Broader market factors, including global regulations and the Strategic Bitcoin Reserve (SBR) initiative, will also play pivotal roles in influencing sentiment.

Stay updated here with our expert insights for a deeper understanding of these pivotal developments.