XRP News Today: SEC Appeal Leaves XRP at sub-$0.55 While BTC Eyes $70,000

SEC vs. Ripple: Appeal Talk Weighs on XRP

Investor uncertainty about the outcome of an SEC appeal against rulings in the SEC v Ripple case impacted XRP demand. On Tuesday, October 15, Fox Business journalist Eleanor Terrett interviewed Ripple Chief Legal Officer Stuart Alderoty, who discussed the appeal process and key dates. The timeline for the appeal is as follows:

• October 16: SEC must file its Form C, detailing the rulings it plans to challenge.
• 7 days after the SEC filing: Ripple will file its Form C, outlining the cross-appeal. The Form C will give investors further details.
• After the Form C filings: Ripple and the SEC must agree to a briefing schedule. The SEC will then have 90 days to file its opening brief, containing its legal argument.
• Ripple’s Response: Ripple will then submit its reply brief and its opening brief on the cross-appeal.
• Expected Duration: The full briefing process may extend into July 2025.

The markets will likely focus on whether the SEC’s Form C filing will 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.

Will the SEC Appeal the Programmatic Sales Ruling?

Pro-crypto lawyer James ‘MetaLawMan’ Murphy predicted the SEC will challenge two rulings:

• Final Judgment: Judge Torres denied the SEC’s request for a $1.1 billion disgorgement.
• Summary Judgment: The Programmatic Sales of XRP ruling. Judge Torres rejected an SEC Motion for Interlocutory Appeal in October 2023, forcing the SEC to wait until after the Final Judgment.

A former SEC lawyer also commented on the appeal, stating that the SEC would likely appeal the ruling on programmatic sales, given the agency’s view that it was an incorrect decision.

The US Court of Appeals 2nd Circuit’s docket suggests an appeal against the Programmatic Sales ruling is likely.

XRP Price Action

On Tuesday, October 15, XRP declined by 1.20%, partially reversing a 3.10% rally from the previous session to close at $0.5419. XRP underperformed the broader crypto market, which gained 0.53%, taking the total market cap to $2.259 trillion. Uncertainty about the SEC appeal strategy left XRP trailing the market.

XRP has failed to break out from $0.55 since sliding to $0.5075 on October 2, as investors reacted to the SEC’s Notice of Appeal. Currently hovering at $0.5401, XRP sits near the higher boundary of the post-Notice of Appeal range. Considering the positive broader market sentiment, XRP should continue to avoid a drop below $0.50.

However, XRP could break out from the current range if the SEC leaves the Programmatic Sales ruling unchallenged.

Fed Rate Cut Expectations Fuel BTC Demand

As legal developments weigh on XRP, broader market trends, particularly Fed rate cut expectations, are fueling interest in Bitcoin (BTC). According to the CME FedWatch Tool, the probability of a 25-basis point November Fed rate cut increased from 83.6% to 97.5% between October 14 and October 15.

Hopes for Fed rate cuts in November and December also continued to fuel interest in BTC-spot ETFs.

BTC Price Target: $70,000 as BTC-spot ETF Market Extends Inflows

On October 14, the US BTC-spot ETF market reported net inflows of $555.9 million. This trend continued into Tuesday, October 15. According to Farside Investors:

• Fidelity Wise Origin Bitcoin Fund (FBTC) saw net inflows of $35.0 million. (Previous day: +$239.3 million).
• ARK 21Shares Bitcoin ETF (ARKB) had net inflows of $14.7 million. (Previous day: +69.8 million).
• Grayscale Bitcoin Trust Mini (BTC) reported net inflows of $13.4 million. (Previous Day: +$4.7 million).

Excluding the iShares Bitcoin Fund (IBIT), the US BTC-spot ETF market saw total net inflows of $82.2 million, extending its inflow streak to three sessions.

Nate Geraci, ETF Store President, highlighted the significance of these inflows, stating,

“So nearly $1bil into spot BTC ETFs in last 2 days… For context, only 8 out of 560+ ETFs launched in 2024 have taken in more than $1bil for the *year*…”

Bitcoin (BTC) Price Action

On Tuesday, BTC advanced by 1.53%, following a 5.36% rally from the previous session to close at $67,000. Significantly, BTC held onto the $67,000 level for the first time since July 28.

Extended net inflows into the US BTC-spot ETF market could support a breakout from Tuesday’s high of $67,881 to target $70,000. BTC supply-demand trends remain crucial in the near term.