Ripple's Legal Battle Intensifies as Bitcoin Approaches $100K: What's Next?

Ripple’s Expectations and the SEC’s Next Steps

Ripple’s leadership anticipates that the SEC will continue its appeal. Chief Legal Officer Stuart Alderoty criticized Gensler’s decision to move forward despite upcoming leadership changes, stating:

“On January 20, Gensler’s war on crypto ends at the SEC. We asked the SEC to agree to postpone the filing of their opening brief in their appeal of our victory (current deadline Jan 15) – and they refused. What a waste of time and taxpayer dollars! Nevertheless, we are confident in our position on appeal and look forward to working with new SEC leadership to resolve this matter.”
The SEC’s refusal to delay its filing reflects its previous stance towards Ripple, initiated by former SEC Chair Jay Clayton in December 2020, just before he left office.

XRP Price Trends: Appeal Filing in Focus

On Tuesday, January 14, XRP surged by 5.70%, closing at $2.6684, following a 0.79% gain the day before. XRP outperformed the broader crypto market, which rose by 2.44%, increasing the total market cap to $3.28 trillion. Market optimism regarding the SEC’s limited chances of overturning the Ripple rulings has driven up XRP demand.
XRP’s price trajectory is closely tied to the Ripple case. If the SEC files a compelling opening brief, XRP could fall towards $2. Conversely, if the agency withdraws its appeal, XRP could surge past its 2018 record high of $3.5505.

Bitcoin’s Rally Amid Trump Transition

Meanwhile, Bitcoin (BTC) has been recovering from a brief dip below $90K. Anticipation of crypto-friendly executive orders on Trump’s first day in office has spurred demand for BTC. Expectations include a potential repeal of the SEC’s SAB 121 regulation, which mandates that companies hold crypto assets on their balance sheets, even if they are in customer custody.
President Joe Biden had previously vetoed a bipartisan vote against this regulation, which makes it costly for banks to hold crypto for clients, limiting crypto services and BTC demand.
Trump’s administration could further boost expectations for a US Strategic Bitcoin Reserve (SBR), enhancing BTC’s supply-demand dynamics. The administration will require Congressional approval to recognize BTC as a strategic reserve asset.
In a recent interview, Anthony Scaramucci mentioned that Senate Banking Committee Chair Tim Scott and US Treasury Secretary Scott Bessent are in favor of this move, leaving Jerome Powell, the US Federal Reserve Chair, as the final decision-maker.

Bitcoin Price Outlook

On January 14, BTC gained 2.19%, reversing a 0.10% loss from the previous day, closing at $96,566.
BTC’s price outlook hinges on the US CPI Report, BTC-spot ETF market flows, and updates regarding the Strategic Bitcoin Reserve (SBR).
Higher-than-expected US inflation could dampen expectations for a 2025 Fed rate cut, potentially leading to BTC-spot ETF outflows and impacting BTC demand. Conversely, lower inflation figures might reignite bets on a March Fed rate cut, pushing BTC towards its $108,231 record high.
However, developments related to the SBR could outweigh the Fed’s influence on market sentiment. Increased support for an SBR could drive BTC to new heights, while a lack of bipartisan support might pull it below $90K.