XRP News Today: XRP Flips Tether as BTC Dips on US Government Move

XRP Flips Tether Reclaiming Pre-SEC Lawsuit Rank

On Monday, December 2, XRP flipped Tether (USDT), regaining its pre-SEC vs. Ripple case position as the third-largest crypto by market cap.

Stay tuned as we explore the key drivers sending XRP to number 3 in the crypto rankings.

XRP-Spot ETF Activity Intensifies Driving XRP Demand

WisdomTree filed an S-1 with the US Securities and Exchange Commission (SEC), driving XRP demand. Fox Business journalist Eleanor Terrett reported the filing, saying,

“WisdomTree officially files an S-1 with the SEC for an XRP-spot ETF. WisdomTree joins Bitwise Invest, 21Shares, and Canary Funds in applying for a fund that tracks the daily price of XRP.”

The ETF issuer was among the pioneers in the US crypto-spot ETF space, launching its WisdomTree Bitcoin Fund (BTCW) on January 11, 2024. Since launching, BTCW registered $217 million in net inflows. Its XRP-spot ETF could have more success if demand mirrors recent XRP price trends.

In Europe, Bitwise Invest rebranded its European XRP exchange-traded product (ETP) from ETC Group Physical XRP to Bitwise Physical XRP ETP. According to the posting, Ripple is also an early investor in the newly rebranded ETP.

Bitwise remarked on XRP, stating,

“XRP […] is gaining more and more popularity due to its speed, efficiency, and reliability in areas like cross-border remittances, institutional DeFi, and real-world tokenization.”

A US XRP-spot ETF market could be a boon for XRP if demand mirrors inflow trends from the US BTC-spot ETF market. Since launching on January 11, 2024, the US BTC-spot ETF market has registered $30,706 million in net inflows, supporting BTC’s climb to an all-time high of $99,318.

The anticipation of a pro-crypto SEC and the potential approval of US XRP-spot ETFs sent XRP to its highest level since January 2018.

XRP Price Action

On Monday, December 2, XRP soared 18.7%, following Sunday’s 17.7% surge, closing at $2.7266. XRP climbed to a session high of $2.8742, its highest since January 2018’s all-time high of $3.5505.

The broader crypto market edged 0.07% higher, bringing the crypto market cap to $3.390 trillion.

Looking ahead, upcoming catalysts include RLUSD’s approval, the SEC Chair nomination, and the resolution of Ripple’s legal battles. These could propel XRP toward its all-time high of $3.5505.

Where do you think XRP is headed next? Click here for our latest XRP news, market insights, and exclusive expert analysis.

Bitcoin Dips Below $95,000 on US Government Activity

On Monday, news of the US government moving $1.92 billion in BTC to Coinbase (COIN) impacted BTC demand.

Arkham reported the BTC transfer, stating,

“US government moving $1.92B BTC to new addresses.”

Monday’s transfer leaves the US government with 188,309 BTC, equivalent to $18.01 billion, in its crypto stockpile.

The US government’s BTC sale could impact supply-demand dynamics, adversely impacting BTC price trends.

Jason Lowery, author of ‘Softwar: A Novel Theory on Power Projection and the National Strategic Significance of Bitcoin,’ commented:

“This is a huge strategic mistake. There is no price where it makes sense for the US to sell any Bitcoin it has under its control. They have no idea what they own, and it shows.”

The US government’s BTC transfer highlighted the marked difference between Trump’s plans for BTC and the Democrat’s stance on cryptos.

On the campaign trail, President-elect Trump pledged to make BTC a US strategic reserve asset, making the government a BTC HODLER.

Congress, the Federal Reserve, the Treasury Department, and the President must approve BTC as a strategic reserve asset.

Trump’s nominations for the SEC and Commodities Futures Trading Commission Chairs will also be crucial. The agencies must implement appropriate regulatory guidelines. Trump’s US Treasury Secretary nomination, Scott Bessent, highlighted the importance of the crypto market to US investors in July while criticizing the Democratic Party’s anti-crypto stance.

US BTC-Spot ETF Market Eyes Three-Day Inflow Streak

On Monday, the US BTC-spot ETF market may extend its inflow streak to three sessions. According to Farside Investors:

• Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $25.1 million.
• ARK 21Shares Bitcoin ETF (ARKB) saw net inflows of $17.2 million
• Grayscale Bitcoin Mini Trust (BTC) reported net inflows of $6.4 million.
• However, Grayscale Bitcoin Trust (GBTC) and VanEck Bitcoin Trust (HODL) saw net outflows of $28.1 million and $10.9 million, respectively.

Excluding flow data for iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market registered net inflows of $15.3 million. Inflows were well below the US government’s BTC transfer to Coinbase, sending BTC below the crucial $95,000 support level.

While BTC continues to hover below the coveted $100k mark, betting platform Kalshi revealed a pullback in bullish sentiment. On Tuesday, December 3, the chances of BTC hitting $100k by December 31 stood at 64%, down from 77% on Monday. Nevertheless, market bets on BTC reaching $100k by December 31 are up from 59% before Thanksgiving.

Bitcoin (BTC) Price Prediction

On Monday, BTC declined by 1.25%, reversing a 0.79% gain from Sunday, closing at $95,813. Significantly, BTC briefly dropped below the crucial $95,000 mark for the first time in four sessions before steadying.

Near-term BTC price trends will likely hinge on US BTC-spot ETF flows, US government BTC sales-related news, and Trump’s SEC and CFTC nominations.

Pro-crypto Chairs could raise hopes that BTC will become a US strategic reserve asset and drive BTC above $100,000. However, BTC could drop toward $90,000 if the US government moves more BTC and the US BTC-spot ETF market registers net outflows.

Outlook Summary for XRP and BTC

For XRP, spot ETF approvals and positive regulatory developments could drive prices toward January 2018 highs of $3.55. Meanwhile, Bitcoin’s trajectory hinges on ETF inflows and the US government’s crypto policy. A pro-crypto administration could push BTC past $100,000, while US government sales could send it toward $90,000.

Stay informed with the latest insights on crypto market trends and regulatory shifts.