Summary:
The SEC's January 15 appeal filing deadline is causing anxiety among XRP investors.
If the SEC appeals successfully, XRP may fall under regulatory purview, leading to potential delistings.
XRP's price remains above $2, driven by hopes of a withdrawal of the SEC appeal.
Bitcoin faces pressure from ETF outflows and speculation about its role as a US strategic asset.
BTC closed at $93,476, with potential support at $90,742 if outflows continue.
SEC Appeal Filing Looms Leaving XRP Investors on Edge
The ongoing debate in the Ripple case highlights its complexities. The SEC is expected to address evidentiary shortcomings in its appeal-related opening brief, which must be filed by the January 15 deadline. This could provide insights into whether the SEC has enough evidence to overturn the recent rulings.
For XRP investors, the Programmatic Sales of XRP ruling is particularly significant. In July 2023, Judge Analisa Torres determined that programmatic sales of XRP did not meet the third prong of the Howey Test. If the SEC's appeal is successful, XRP may fall under its regulatory scope, leading to potential delisting by US crypto exchanges and a significant drop in demand.
Despite the looming appeal, XRP remains priced above $2, reflecting investor hopes that the new SEC Chair, Paul Atkins, and crypto-friendly Commissioners will withdraw the appeal.
XRP Price Trends: Can It Revisit $3?
On December 29, XRP slid by 4.08%, finishing at $2.0932, underperforming against a broader market decline of 2.08%. The SEC’s appeal plans will heavily influence near-term trends. A compelling SEC brief could push XRP below $1.50, while a withdrawal might spark a rally past its December 3 high of $2.9070.
Bitcoin Under Pressure Amid ETF Outflows
Meanwhile, Bitcoin (BTC) is also under pressure due to regulatory developments, falling from its December 17 all-time high of $108,231. Concerns regarding its viability as a US strategic reserve asset and BTC-spot ETF market outflows have negatively impacted investor sentiment.
CryptoQuant.com founder, Ko Young Ju, expressed skepticism about Bitcoin being adopted as a strategic asset, stating, "I question whether the US, while continuing to grow as other economies stagnate, would adopt Bitcoin as a strategic asset."
His comments reflect market sentiment regarding the Fed's recent economic projections, which have led to $377.6 million in net outflows from the US BTC-spot ETF market in the week ending December 27, ending a three-week inflow streak.
Bitcoin Price Outlook
On December 29, BTC declined by 1.69%, closing at $93,476. Near-term price action will depend on US BTC-spot ETF market trends and developments regarding strategic bitcoin reserves. Further ETF outflows and potential US government BTC sales could push BTC toward the $90,742 support level, while inflows and progress on SBR discussions may drive it toward $100k.
Comments