Ripple vs. SEC: The Showdown That Could Change XRP Forever as Bitcoin Approaches $95K!

Ripple vs. SEC: A Case at a Critical Juncture

The SEC is under pressure to clarify the status of Hinman's speech amid a Ripple appeal. Key points include:

• The SEC formally states that the Hinman speech is not to be relied upon as guidance.
• An immediate review of all digital asset-related investigations and litigation cases is initiated.
• Stays are sought for cases without fraud or imminent harm.

These developments could significantly impact the Ripple case, with the SEC's opening brief due by January 15, 2025.

In August 2024, Judge Analisa Torres ordered Ripple to pay a $125 million penalty for violating US securities laws, which was significantly lower than the SEC's demand for a $2 billion punitive penalty. Notably, the court found no pecuniary harm suffered by investors, nor fraud committed by Ripple.

A potential stay on the Ripple case may lead the SEC to withdraw its appeal, making the Programmatic Sales of XRP ruling a critical legal precedent for the US digital asset market. The resolution of this case could be a boon for XRP, which has been mired in uncertainty due to the SEC's appeal plans.

The Hinman Speech: A Contentious History

Renouncing Hinman’s 2018 speech would be a significant win for Ripple. The speech, where Hinman stated that Bitcoin (BTC) and Ethereum (ETH) are not securities, has been controversial due to Hinman's ties to Simpson Thacher, a firm promoting Enterprise Ethereum.

During the SEC vs. Ripple case, the SEC attempted to shield documents related to Hinman’s speech under attorney-client privilege, but the court rejected these motions, revealing that Hinman continued his connections with Simpson Thacher despite ethics warnings.

XRP Price Trends: Awaiting Key SEC Decisions

On December 19, XRP fell by 3.10%, closing at $2.2376, following a broader market decline. The US labor market and GDP data indicate a strong economy, influencing the Fed’s monetary policy and XRP's price trends. If the SEC withdraws its appeal, XRP could target its 2018 all-time high of $3.5505, but initial selling pressure may occur if the SEC files its opening brief.

Bitcoin Revisits $95K as US Data Bolsters Fed’s Rate Path Outlook

Bitcoin dropped to the $95k level on December 19, influenced by robust US labor market data. Key points include:

• Initial jobless claims fell, indicating a resilient labor market, which may raise borrowing costs and impact demand for BTC.
• The US economy's performance supports fewer rate cuts, affecting BTC's price.

Will the Fed Rate Path End the US BTC-Spot ETF Market’s Inflow Streak?

On December 18, the US BTC-spot ETF market extended its inflow streak to 15 sessions, with BlackRock’s iShares Bitcoin Trust contributing significantly. However, recent flow trends suggest a potential end to this streak, with major outflows reported from various funds, potentially impacting BTC's supply-demand dynamics.

Bitcoin Price Outlook

On December 19, BTC declined by 2.4%, closing at $97,704. Future trends will depend on US economic indicators and BTC-spot ETF flows, with significant sales or outflows potentially pulling BTC below $95,000. Conversely, inflows and progress towards an SBR could drive BTC towards $110,000. The upcoming US Personal Income and Outlays Report will likely influence sentiment toward the Fed’s rate path, impacting BTC's future movements.