XRP News Today: XRP Faces Volatility on SEC Appeal While BTC Dips Below $70,000

Trump Targets Crypto Vote as Election Day Looms

On Thursday, October 31, Donald Trump celebrated the sixteenth anniversary of Satoshi Nakamoto’s White Paper, saying,

“I would like to wish our great Bitcoiners a Happy 16th Anniversary of Satoshi’s White Paper. We will end Kamala’s war on crypto, & Bitcoin will be MADE IN THE USA! VOTE TRUMP!”

Trump has targeted the crypto vote since becoming the Republican Party candidate for the US Presidential Election. Several pledges have positioned Trump as the crypto market’s President of Choice. Significantly, Trump aims to make BTC a US strategic reserve, which could materially shift the demand-supply balance in its favor.

The US government currently holds 208,109 BTC, equivalent to $14.64 billion. Trump’s plans to acquire BTC and for the US government to become a BTC HODLER would support buyer demand for BTC and the broader crypto market, including XRP.

Furthermore, Trump also plans to fire SEC Chair Gary Gensler on his first day in office. A shift in the SEC’s oversight of the US digital asset space could markedly reduce litigation risks that crypto firms and investors face.

Consequently, XRP could see increased demand through potential launches of US XRP-spot ETFs.

Meanwhile, Kamala Harris’s lead in the US Presidential Election narrowed further, raising the chances of a Trump victory. According to the latest national polls, Harris leads Trump by 1.2 points as of Thursday, down from 1.7 points on October 24.

SEC vs. Ripple: Appeal Path Hinges on the US Presidential Election

As the US Presidential Election approaches, speculation about the SEC withdrawing its appeal could intensify. The SEC must file its appeal-related opening brief by January 15, 2025, mere days before Inauguration Day.

A Trump victory may influence the SEC to reconsider appealing rulings in the SEC vs. Ripple case. The SEC’s plan to appeal against the Programmatic Sales of XRP ruling is likely the main issue for investors. Crypto exchanges could delist XRP if the SEC successfully overturns the ruling, adversely impacting XRP price trends.

A Kamala Harris victory may allow the SEC to continue its appeal, exposing XRP and the broader market to the risk of an SEC win.

XRP Price Action

On Thursday, October 31, XRP slid by 2.39%, following a 1.02% loss on Wednesday, closing at $0.5099. XRP fared better than the broader crypto market, which declined by 3.10% to a total market cap of $2.307 trillion.

Bitcoin Slides on US Personal Income and Outlays Report

Shifting focus to BTC, the US economic calendar and sentiment toward the Fed rate path affected BTC demand.

The US Personal Income and Outlays Report signaled a possible pickup in inflationary pressures, reducing bets on a December Fed rate cut. Notably, personal spending increased by 0.5% in October, up from 0.3% in September, while the Core PCE Price Index mirrored September’s gain, rising 2.7% year-on-year.

According to the CME FedWatch Tool, the chances of a 25-basis point December Fed rate cut dropped from 72.2% on Wednesday to 71.1% on Thursday.

US BTC-Spot ETF Could End Six-Day Inflow Streak

The US economic data also influenced demand for US BTC-spot ETFs. According to Farside Investors:

• ARK 21Shares Bitcoin ETF (ARKB) reported net outflows of $94.2 million. (Previous day: +$7.2 million).
• Fidelity Wise Origin Bitcoin Fund (FBTC) had net outflows of $75.2 million. (Previous day: +$12.6 million).
• Bitwise Bitcoin ETF (BITB) saw net outflows of $74.0 million. (PD: -$23.9 million).
• Grayscale Bitcoin Trust (GBTC) had net outflows of $31.1 million. (PD: zero net flows).

Excluding flow day for iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market reported net outflows of $272.6 million, the highest since September 3. Fears of a US economic recession influenced BTC-spot ETF flow trends in early September.

Significantly, if IBIT has net inflows of less than $272.6 million, the US BTC-spot ETF’s six-day inflow streak will end. However, October was an impressive month for US BTC-spot ETFs, with net inflows totaling $5,110.3 million, excluding IBITs Thursday numbers.

Bloomberg Intelligence Senior ETF Analyst Eric Balchunas remarked on the US BTC-spot ETF market figures, stating,

“12,000 btc a day keeps the doctor away lol. At this rate they’ll pass Satoshi in less than two weeks. Altho they can’t keep up this Joey Chestnut-level pace, can they?”

BlackRock’s (BLK) iShares Bitcoin ETF was the main influencer in October, with net inflows of $4,321.9 million (excluding Thursday’s data).

Bitcoin (BTC) Price Action

On Thursday, October 31, BTC declined by 2.84%, following a 0.37% loss from the previous session to close at $70,307. Significantly, BTC dipped below $70,000 as investors reacted to the US data.

On Friday, November 1, the market focus will shift to the US Jobs Report. Upbeat numbers may dampen BTC demand, potentially dragging BTC toward $67,500. Conversely, an unexpected rise in the US unemployment rate and expectations of a soft US economic landing could drive BTC toward its all-time high of $73,808.