XRP and Bitcoin: Crucial Developments Impacting Prices and Market Sentiment

Summary:

XRP’s price is influenced by the SEC appeal and Senate vote on Commissioner Crenshaw.
A negative vote on Crenshaw’s renomination could lead to a Trump-fueled rally for XRP.
XRP tumbled by 14.86%, closing at $2.2176 amid broader market decline.
Bitcoin dropped below $95k, facing challenges in becoming a US strategic reserve asset.
Microsoft shareholders may vote on acquiring BTC, potentially paving the way for other companies.

XRP Price Outlook Hinged on the SEC

Uncertainty about whether the SEC will file its opening brief has likely contributed to XRP’s retreat from the December 3 high of $2.9070. Internal SEC rules mandate that an agency vote, not the Chair alone, determines the appeal’s continuation or withdrawal. The December 11 Senate Banking Committee vote on SEC Commissioner Carline Crenshaw’s renomination could influence the outcome.

Commissioner Crenshaw could be the last Democratic Commissioner and a potential stumbling block in Trump’s pro-crypto agenda. XRP and the broader crypto market could resume the Trump-fueled rally if the Senate Banking Committee votes against her renomination. Conversely, renomination could leave XRP in a state of uncertainty going into the New Year.

On Monday, December 9, XRP tumbled by 14.86%, following Sunday’s 0.27% loss, closing at $2.2176. This significant drop indicates that price trends will hinge on Wednesday’s renomination vote and the SEC’s plans to appeal Ripple-related rulings.

Expectations for the SEC to pursue the appeal could pressure XRP toward $1. Conversely, a withdrawal may drive XRP past its January 2018 all-time high of $3.5505. The result of Commissioner Crenshaw’s renomination vote may fast-track XRP’s price trajectory.

Bitcoin: Strategic Reserve Debate and Price Volatility

Bitcoin (BTC), the crypto market’s barometer, dropped below the $95k psychological level on Monday, impacting the broader crypto market. BTC failed to break above the December 5 record high of $103,628 despite speculation about BTC becoming a US strategic reserve asset (SBR).

Adoption hurdles include Congressional, Federal Reserve, Treasury, and Presidential approvals. The US government may have more conviction for an SBR if China adopts BTC as a strategic reserve asset. Binance founder Changpeng Zhao speculated that China might accumulate BTC before announcing it as a strategic reserve asset, potentially further tightening supply.

On Tuesday, December 10, Microsoft shareholders could vote to include BTC on its balance sheet at the Annual Shareholders Meeting. According to a SEC filing, the board opposed the move, highlighting BTC as an inflation hedge and referencing BlackRock’s Bitcoin ETF and MicroStrategy, which has outperformed Microsoft stock this year by 313%.

A shareholder vote to acquire BTC could open the floodgates for more multinational companies to take similar steps, including a recent proposal from the National Center for Public Policy Research on behalf of Amazon.com shareholders.

On Monday, MicroStrategy founder Michael Saylor announced, “MicroStrategy has acquired 21,550 BTC for ~$2.1 billion at ~$98,783 per bitcoin.”

Bitcoin Price Outlook

On Monday, BTC slid by 3.57%, closing at $97,434. Near-term BTC price trends will hinge on US BTC-spot ETF market flows, Trump’s CFTC Chair nomination, US government BTC movements, and shareholder votes.

Robust US BTC-spot ETF inflows, a vote in favor of Microsoft acquiring BTC, and a pro-crypto CFTC Chair could drive BTC toward $100,000. However, a sizeable US government BTC transfer could weigh on BTC demand.