XRP News Today: XRP Hits $3 as SEC Appeal Filing Looms; BTC Strikes $100K

XRP Hits $3 Ahead of SEC Opening Brief Filing

On January 15, XRP surged above $3 for the first time since 2018, reflecting positive confidence ahead of the SEC’s last-minute appeal-related opening brief filing. The rally underscores market sentiment that the SEC may struggle to overturn rulings in the SEC vs. Ripple case.

Recent court decisions have reprimanded the SEC’s enforcement tactics, suggesting a shift in attitudes towards the agency’s ongoing assault on crypto firms. The SEC could face a similar reception in its high-stakes battle to overturn the Programmatic Sales of XRP ruling.

Amicus Curiae attorney John E. Deaton recently highlighted the appeal’s complexities, saying that a win for the SEC at the Second Circuit would push the case back to Judge Analisa Torres. Deaton added that Ripple would likely petition the US Supreme Court to hear its case if it lost at the Second Circuit. He believes the SEC could lose in such a scenario.

If the US Supreme Court upholds the Programmatic Sales of XRP ruling, it would set a landmark legal precedent for the US crypto market. At this stage, the ruling is a non-binding precedent.

Crypto Policy Shake-Up: A Safety Net for XRP?

Typically, the prospects of an appeal filing could fuel uncertainty, likely impacting XRP demand. However, Trump’s Presidential Election victory and SEC overhaul potentially give XRP investors a safety net. Experts anticipate Paul Atkins, a Trump-appointed SEC Chair, will reverse course on the agency’s aggressive stance on crypto enforcement while maintaining a focus on fraud cases.

Deaton commented on reports of Trump’s SEC planning to overhaul crypto policy, review enforcement cases pending in court, and potentially freeze enforcement, saying,

“Let’s not go from one extreme to another. Let’s make sure we implement policies that encourage and foster innovation in America, while making sure safeguards are in place to protect users, customers, and retail investors. We all know fraud and bad actors will continue to persist in any burgeoning industry. There will be fraud, pump and dumps, and other activities, we need to address as we move forward.”

XRP’s first visit to $3 since 2018 reflects optimism regarding an SEC appeal withdrawal and market sentiment over the agency’s challenges. The Ripple case lacked fraudulent allegations, allowing the SEC to withdraw the appeal.

On January 15, Reports that the SEC may dismiss or pause certain non-fraud crypto cases contributed to market optimism. Democrats Commissioner Jaime Lizarrage and Chair Gensler will leave the agency on January 17 and 20, respectively, while Caroline Crenshaw left in December after a failed renomination vote. Republican Commissioners remain, allowing the agency to swiftly change tack.

XRP Price Trends: Appeal Challenge Crucial

On Wednesday, January 15, XRP surged 17.82%, following Tuesday’s 5.70% to close at $3.1438. Significantly, XRP outperformed the broader crypto market, which advanced by 5.44%, taking the total market cap to $3.46 trillion.

XRP’s price trajectory hinges on the SEC’s opening brief. XRP could drop toward $2.5 if the SEC files an opening brief, convincingly challenging the Programmatic Sale of XRP ruling. Conversely, XRP could break above its 2018 record high of $3.5505 if the agency does not file its opening brief.

Traders should remain vigilant as the SEC must file its opening brief by midnight, January 15, Eastern Standard Time (EST).

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

BTC Revisits $100K: US CPI Report Fuels Crypto Breakout

Meanwhile, bitcoin (BTC) reacted to the US CPI Report and rising bets on a March Fed rate cut. The core inflation rate unexpectedly eased from 3.3% in November to 3.2% in December.

According to the CME FedWatch Tool, the probability of a 25-basis point March Fed rate cut increased from 23.2% to 28.2% following the inflation data. Bitcoin rallied to a January 15 high of $100,645 in response to a potentially less hawkish Fed rate path.

US BTC-Spot ETF Market Gets Much-Needed Inflation Boost

On January 15, the US BTC-spot ETF market reflected the potential impact of the US CPI Report on the Fed rate path. According to Farside Investors:

• Fidelity Wise Origin Bitcoin Fund (FBTC) saw net inflows of $463.1 million on January 15.
• ARK 21Shares Bitcoin ETF (ARKB) had net inflows of $138.8 million.
• Grayscale Bitcoin Trust (GBTC) and Grayscale Bitcoin Mini Trust (BTC) also saw net inflows.

Excluding BlackRock’s (BLK) iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market reported net inflows of $723.2 million, ending a four-day outflow streak.

Hopes for a less dovish Fed rate path could further boost BTC demand as speculation continues to intensify about a US Strategic Bitcoin Reserve (SBR) and repeal of the SEC’s SAB 121 regulation.

Staff Accounting Bulletin 121 (SAB 121) is an SEC requirement for companies, including banks, to hold crypto assets on their balance sheets even if they hold the cryptos under customer custody. President Joe Biden vetoed a bipartisan vote against the regulation.

The regulation makes it expensive for banks to hold crypto under custody for clients, limiting crypto services and BTC demand.

Bitcoin Price Outlook

On Wednesday, January 15, BTC rallied 3.61%, following Tuesday’s 2.19% gain, closing at $100,050.

BTC’s price outlook will likely hinge on US labor market data, US BTC-spot ETF flows, and Strategic Bitcoin Reserve (SBR) developments.

A fall in initial jobless claims and a spike in US retail sales could counter Wednesday’s inflation numbers. A tighter labor market could boost wages, fueling consumer spending and demand-driven inflation. A jump in retail sales may also signal higher inflation, supporting a more hawkish Fed rate path, impacting riskier assets.

Conversely, a jump in jobless claims and weak retail sales could further support bets on a March Fed rate cut. A more dovish Fed rate path may drive BTC to its record high, $108,231.

However, US SBR developments could have a greater impact on BTC demand. Bipartisan support for an SBR could send BTC to new highs, while a lack of support may drag it below $90K.

Market Outlook: A Critical Juncture for XRP and BTC

XRP and BTC face pivotal moments as regulatory and macroeconomic developments unfold. XRP’s price trajectory hinges on the SEC’s appeal strategy, while BTC’s outlook will depend on ETF flows and US data. Broader regulatory shifts, including US Strategic Bitcoin Reserve-related chatter, could also significantly impact market sentiment.

Stay informed with our expert analysis of these unfolding developments and their implications for crypto markets. Read more here.