XRP News Today: XRP Slips Below $0.50 with BTC Below $68k as Election Day Looms

Ripple’s Escrow and XRP in Focus

On Sunday, November 3, the crypto community continued discussing Ripple’s Q3 2024 Markets Report, released on Friday, November 1.

Ripple’s XRP holdings in escrow drew significant attention as investors awaited SEC vs. Ripple case-related updates. At the end of Q3 2024, Ripple’s total XRP, Subject to On-Ledger Escrow, was 38,900,000,005, down from 39,500,000,005 at the end of Q2 2024.

As a background, the escrow mechanism, releasing one billion XRP monthly over 55 months, has 42 months remaining as of September 30, 2024.

Pro-crypto lawyer Bill Morgan responded to questions about the impact of escrow on retail and banks, stating,

“Well the SEC in the lawsuit asserted the escrow was one of several measures Ripple took to buttress the price of XRP. Many in the XRP community believe it suppresses the price of XRP but that seems wrong for dozens of reasons. Ripple messaging is that the escrow shows its responsible stewardship of large but steadily declining volume of XRP it controls.”

Morgan also corrected another member of the crypto community, who suggested that escrow volume suppresses prices.

SEC vs. Ripple: an XRP Suppressant

SEC vs. Ripple case remains a crucial factor in XRP’s price action. In July 2023, XRP surged to a high of $0.9327 in response to the Programmatic Sales of XRP ruling. The ruling enabled US exchanges to relist XRP after the delistings in reaction to the SEC’s December 2020 lawsuit.

However, the threat of an SEC appeal dragged XRP below the crucial $0.50 mark in August 2023.

Fast forward to October 2024, the SEC filed its Notice of Appeal, challenging rulings in the Ripple case. XRP dropped below $0.60, where it has remained since the October 2 court filing.

The Programmatic Sales of XRP ruling remains an SEC focal point. Successfully overturning Judge Torres’s ruling could lead to US exchanges delisting XRP for a second time and reduce the chances of a US XRP-spot ETF market.

The appeal threat and risk of an SEC win may leave XRP below the $0.60 handle. Investors must wait for the SEC’s appeal-related opening brief filing to assess the strength of the SEC’s case for an appeal.

The SEC must file its opening brief by January 15, 2025, mere days before the Inauguration of the US President.

XRP Price Action

On Sunday, November 3, XRP declined by 1.35%, following a 0.55% loss from the previous session, closing at $0.5033. Significantly, XRP dropped below the $0.50 mark for the first time in eight sessions. The broader crypto market succumbed to similar losses, falling 1.19% to a total market cap of $2.248 trillion.

BTC Dips Below $69,000 as US Presidential Election Day Looms

Meanwhile, BTC continued its trend downward despite impressive US BTC-spot ETF inflows, tilting the supply-demand balance in BTC’s favor. In the week ending November 1, the US BTC-spot ETF market saw total net inflows of $2,220.2 million, extending its inflow streak to four weeks.

However, the US BTC-spot ETF market ended a seven-day inflow streak on Friday, November 1, dampening BTC demand. Uncertainty about the outcome of the US Presidential Election likely dragged BTC to a Sunday low of $67,626.

The latest polls show Kamala Harris leading by 0.9 points, signaling a close race to the White House. Betting site Polymarket is also signaling a close race. Trump’s odds of winning the US Presidential Election have fallen from 66.9% (October 30) to 54.8% (November 4), adding to the uncertainty about the election.

With the markets focused on tomorrow’s US presidential election, the polls and betting odds may continue influencing BTC demand. However, US BTC-spot ETF market flow trends also require consideration.

Bitcoin (BTC) Price Action

On Sunday, November 3, BTC declined by 0.97%, reversing a 0.03% gain from the previous session to close at $68,908.

Increasing odds and support for a Trump win could drive BTC toward its all-time high of $73,808. Conversely, signals of a Kamala Harris win may drag BTC below $65,000.