Summary:
SEC's withdrawal of appeal sparks optimism in the crypto market.
XRP rallies 6.90%, closing at $2.7379.
Speculation on XRP-spot ETFs fuels market sentiment.
BTC faces $64.1 million in outflows amid Fed uncertainty.
Potential establishment of a US Strategic Bitcoin Reserve could impact BTC prices significantly.
The SEC's regulatory shift has ignited optimism in the crypto markets, particularly for XRP, which recently rallied 6.90% amid the SEC's withdrawal of its appeal in a significant lawsuit. This development has raised speculation about a potential XRP-spot ETF approval, further boosting market sentiment.
SEC's Appeal Withdrawal
The SEC, now under the leadership of Mark Uyeda, has voluntarily dismissed its appeal regarding the Dealer Rule, which sought to redefine the classification of crypto trading firms. The Blockchain Association hailed this as a victory for innovation in the crypto space.
"Today, under new leadership at the agency, the SEC voluntarily dismissed its appeal, marking a total victory in the case not only for us, but for the innovators, entrepreneurs, and builders across America," stated a representative from the Blockchain Association.
SEC's Focus on Crypto Cases
Following this withdrawal, the SEC has prioritized cases with imminent deadlines, suggesting that the agency may soon withdraw its appeal concerning Ripple's XRP programmatic sales. With the next deadline approaching on April 16, the SEC appears to be focusing on cases that require immediate attention.
Positive Market Sentiment
On February 19, the SEC acknowledged 19b-4 applications for XRP-spot ETFs from various financial institutions, fueling optimism in the market. This acknowledgment coincided with XRP's impressive price performance, closing at $2.7379.
XRP Price Outlook
XRP's recent rally has been driven by speculation surrounding the SEC potentially withdrawing its Ripple case appeal and the positive developments regarding XRP-spot ETFs. Here are some potential price scenarios:
- Bullish Case: If the SEC withdraws its appeal, XRP could surpass its all-time high of $3.5505.
- ETF Catalyst: Approval of an XRP-spot ETF could push prices toward $5.
- Bearish Case: Continued SEC appeals may lead XRP below $1.50.
Bitcoin Market Sentiment
In contrast, the Bitcoin market is facing headwinds, with reports of significant outflows in the US BTC-spot ETF market amid concerns regarding inflation and potential Fed policy changes. Despite a slight recovery, BTC experienced outflows totaling $64.1 million.
Strategic Bitcoin Reserve Potential
The discussion of establishing a US Strategic Bitcoin Reserve could greatly influence Bitcoin's market dynamics. Legal expert John E. Deaton suggested that if the US government begins purchasing BTC, it could trigger a wave of adoption among other nations, potentially driving BTC prices to unprecedented levels.
Bitcoin Price Outlook
On February 19, BTC closed at $96,387, marking a slight gain. Key price scenarios for BTC include:
- Bearish: Positive US data and rising tariff tensions could push BTC toward $90,000.
- Bullish: Weak US services data and progress on a Strategic Reserve could drive BTC towards its all-time high of $109,312.
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