Summary:
XRP remains below its all-time high amidst SEC uncertainty.
The SEC must file an appeal by January 15, which could impact XRP's future.
A potential withdrawal of the SEC appeal could pave the way for US XRP-spot ETFs.
On January 5, XRP closed at $2.3986, while Bitcoin (BTC) is nearing $100k.
Recent BTC demand is driven by significant inflows and billionaire investors.
SEC Appeal Deadline Approaches: Whatâs at Stake for XRP?
XRP remains significantly below its January 2018 all-time high of $3.5505, amidst rising optimism in the US digital asset space. The impending SEC appeal regarding the Ripple case poses a major challenge for XRP's future.
The SEC is required to submit its appeal-related opening brief by January 15. Following its Notice of Appeal filed in October, the agency's intention to contest the Programmatic Sales of XRP ruling has been confirmed. Recent activities indicate that SEC Chair Gensler is reinforcing the litigation team, which could mean the agency is serious about moving forward with the appeal.
Market analysts are hopeful that incoming SEC Chair Paul Atkins might reconsider and withdraw the appeal. If this happens, the Programmatic Sales of XRP ruling could establish a pivotal legal precedent, potentially leading to the launch of a US XRP-spot ETF market.
The end of the Ripple case and the emergence of a US XRP-spot ETF could greatly benefit XRP and the entire crypto ecosystem, as the approval of these ETFs could significantly drive crypto demand.
XRP Price Trends
On January 5, XRP saw a 0.90% decline, closing at $2.3986, following a 1.35% drop the previous day. The broader crypto market dipped by 0.13%, totaling a market cap of $3.420 trillion.
Investors are hoping for a withdrawal of the SEC appeal by the January 15 deadline, which could elevate XRP towards $3. Conversely, if the SEC proceeds with its appeal, XRP might fall below $2.
Bitcoin Trends: Demand Outpaces Supply
Meanwhile, Bitcoin (BTC) is inching closer to the $100k mark as market demand continues to rise. Recent data from HODL15Capital showcases that a notable list of 60 billionaires holds Bitcoin, including Elon Musk, Mark Zuckerberg, and Larry Ellison. This trend could motivate retail investors to increase their BTC holdings, thus shifting the supply-demand dynamics in Bitcoin's favor.
Spotlight on U.S. BTC-Spot ETFs
On January 6, the US BTC-spot ETF market is gaining attention with net inflows of $908.1 million on January 3, contributing to a 6-day winning streak for BTC. Speculation regarding the US government's potential approval of a Strategic Bitcoin Reserve (SBR) is fueling market optimism, particularly as Trumpâs inauguration approaches.
Bitcoin Price Outlook
On January 5, BTC advanced by 0.24%, closing at $98,313. The near-term price trends for BTC are heavily reliant on US-BTC-spot ETF market flows and developments regarding the SBR. Positive support from Congress for an SBR could propel BTC to new heights, while negative sentiment could drag it down to the $90,742 support level.
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