Summary:
XRP's price declined from $2.9070 due to SEC appeal expectations.
SEC Chair Gensler's departure on January 20 may impact crypto regulation.
Incoming Chair Atkins must balance pro-crypto policies with enforcement.
Bitcoin struggles to break $100k for the seventh session.
Recent BTC-spot ETF inflows indicate potential price support.
XRP Price Retreat and SEC Developments
Expectations surrounding the SEC's appeal filing have led to a retreat in XRP's price, which dropped from a high of $2.9070 on December 3. SEC Chair Gary Gensler will leave his position on January 20, but his recent promotion of crypto-enforcement lawyers has solidified his stance on the crypto industry.
Incoming SEC Chair Paul Atkins faces a challenging environment, needing to navigate between Trump’s pro-crypto agenda and the SEC’s enforcement policies. Former SEC Division Chief John Reed Stark warns that the crypto fight is just beginning:
“The Stark reality is that it looks like the crypto-fight is on post-January 20th. So get ready for World War III on day one Chair Atkins... these three crypto-enforcement lawyers... will not roll over easily.”
Despite this, it is important to note that the decision to continue or withdraw the appeal lies with the SEC commissioners and not solely with the Chair. There remains potential for a withdrawal of the appeal, but ongoing uncertainties continue to pressure XRP.
Bitcoin’s Journey Towards $100k
Bitcoin (BTC) has faced challenges in maintaining its momentum, reversing its holiday rally and failing to surpass the $100k mark for the seventh consecutive session. On Tuesday, the US BTC-spot ETF market experienced its longest outflow streak since September, lasting four days. However, recent flow data indicates a shift in demand with significant inflows:
- Fidelity Wise Origin Bitcoin Fund (FBTC): $254.4 million
- ARK 21Shares Bitcoin ETF (ARKB): $186.9 million
Excluding BlackRock’s iShares Bitcoin Trust (IBIT), total net inflows reached $418.7 million, providing potential price support for BTC.
Bitcoin Price Outlook
On December 26, BTC saw a decline of 3.74%, closing at $95,692. The near-term trends for BTC will heavily depend on the US BTC-spot ETF flow trends and any strategic news regarding bitcoin reserves. Continued inflows could push BTC towards $100k, while outflows and uncertainty regarding BTC as a strategic reserve asset may pull it back toward the $90,742 support level.
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