XRP Soars Amid Legal Turmoil: What Gensler's Silence Means for Crypto and Bitcoin's Bright Future

As background, William Hinman famously declared Bitcoin (BTC) and Ethereum (ETH) as not securities in 2018. Empower Oversight claims that Hinman received millions from law firm Simpson Thacher, his former employer, which promotes Enterprise Ethereum. After leaving the agency, Hinman returned to Simpson Thacher.

The reasons for SEC Chair Gensler’s silence on the OIG’s findings remain unknown. During the discovery stage of the Ripple case, the SEC made at least six attempts to shield Hinman’s 2018 speech-related documents under attorney-client privilege. However, the court rejected these attempts, revealing that Hinman continued meeting with his former employer despite warnings from the SEC Ethics Division.

The OIG’s findings could heavily influence the SEC’s appeal decision in the Ripple case, with the opening brief due by January 15. Any evidence of misconduct could intensify scrutiny, particularly as Gensler prepares to leave the agency.

XRP Price Trends: Ripple’s Legal Battle Dictate Market Sentiment

On Friday, January 10, XRP advanced by 3.01%, partially reversing Thursday’s 4.25% slide to close at $2.3410. Significantly, XRP outperformed the broader crypto market, which gained 2.18%, taking the total crypto market cap to $3.23 trillion.

XRP price trends remain hinged on the Ripple case. XRP could drop below $2 if the SEC files its opening brief. The token may fall to $0.50 if Ripple loses at the Second Circuit. Conversely, XRP could break above its 2018 record high of $3.5505 if the agency withdraws its appeal.

Bitcoin Advances as Spot ETF Market Celebrates First Anniversary

Meanwhile, Bitcoin (BTC) marked a significant milestone as the US BTC-spot ETF market celebrated its first anniversary, registering a whopping $36 billion in total net inflows.

Bloomberg Intelligence ETF Analyst James Seyffart commented:

“Just how big was the first year for Bitcoin ETFs? Massive.”

Seyffart noted that four BTC-spot ETFs would make the top 20, even adjusted for inflation, with BlackRock’s iShares Bitcoin Trust (IBIT) topping the table.

US Strategic Bitcoin Reserve Developments Drive BTC Demand

On January 10, several US states introduced Strategic Reserve bills, including New Hampshire, Texas, and Pennsylvania. This activity suggests a national SBR is plausible, boosting BTC demand. BTC rebounded from a Friday low of $92,249, with the US BTC-spot ETF market recording net inflows for the day.

Progress toward an SBR could drive demand for US BTC-spot ETFs and BTC to new highs. Amicus Curiae attorney John E. Deaton remarked on the potential impact of an SBR on BTC price trends:

“If the U.S. Government passes Senator Lummis’ Bill and begins buying BTC, it will no doubt cause other nations to follow suit, just like with gold... $1M per BTC happens a lot faster than people think.”

Bitcoin Price Outlook

On January 10, BTC gained 2.27%, closing at $94,818. This recovery occurred despite a hotter-than-expected US Jobs Report signaling a more hawkish Fed rate path. BTC’s near-term trends depend on BTC-spot ETF market flow trends and Strategic Bitcoin Reserve (SBR) developments. Progress toward a US SBR and BTC-spot ETF inflows would signal a supply-demand balance firmly tilted in BTC’s favor, supporting a climb to new highs. However, a lack of progress could drag BTC below the $90,742 support level.