XRP vs SEC: The Battle Heats Up as Bitcoin Surges Past $102k!

XRP Appeal Insights

Deaton elaborated on the appeal process, stating that the case would return to Judge Torres if the SEC won at the Second Circuit. Judge Torres would then apply the other Howey factors and rule against the SEC for failing to prove a common enterprise regarding secondary market sales.

Deaton also considered the possibility of Ripple losing at the Second Circuit, saying that Ripple would petition the US Supreme Court to hear its case. The Amicus Curiae attorney believes the Supreme Court would take the case considering the legal significance and the increasing importance of digital assets. He thinks the SEC could lose big in such a scenario, concluding:

“Hence, my point: appealing the Ripple ruling is a fool’s errand and I think Paul Atkins will see it that way.”

XRP Price Trends

On Monday, January 6, XRP gained 0.92%, reversing Sunday’s 0.90% loss to close at $2.4207. Significantly, XRP trailed the broader crypto market, which advanced by 2.76%, taking the total market cap to $3.510 trillion. The ongoing threat of the SEC pursuing its appeal capped the gains.

XRP price trends now hinge on whether the SEC files its appeal-related opening brief. A court filing could push XRP below $2, with further declines to $0.50 if Ripple loses at the Second Circuit. Conversely, withdrawal could drive XRP past its 2018 record high of $3.5505.

Bitcoin Hits $102k as ETF Inflows Boost Sentiment

Meanwhile, Bitcoin (BTC) enjoyed a breakout session on January 6, retaking the $102k handle. The US BTC-spot ETF market fueled BTC demand, with a likely second session of net inflows. According to Farside Investors:

• Fidelity Wise Origin Bitcoin Fund (FBTC) posted net inflows of $370 million.
• ARK 21Shares Bitcoin ETF (ARKB) reported net inflows of $153 million.

Excluding flow data for BlackRock’s iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market had net inflows of $770 million on January 6. Notably, seven issuers registered net inflows, underscoring improving market sentiment. US BTC-spot ETF market flows continue influencing the supply-demand balance, impacting BTC price trends.

Federal Reserve and a Strategic Bitcoin Reserve

Speculation about a Strategic Bitcoin Reserve (SBR) added fuel to BTC’s momentum. On January 6, news hit the crypto wires of the US Federal Reserve’s Michael Barr’s plans to resign as Vice Chair of Supervision in February.

Founder and CEO of Custodia Bank, Caitlin Long, shared the news:

“The Fed’s debanker-in-chief is out! Michael Barr, the last remaining Biden/Warren appointee who architected Operation Choke Point 2.0 at a federal financial agency will resign as vice chair of supervision in February.”

Michael Barr’s resignation could increase the chances of BTC becoming a US strategic reserve asset. On January 2, Anthony Scaramucci highlighted the chances of an SBR, stating:

“Let me tell you why I think it will happen ok. Trump wants it to happen and he’s got the Senate Banking Committee.”

BTC’s supply-demand balance could shift significantly toward demand dominance if the US government approves an SBR. Deaton recently said that BTC could reach $1 million a lot faster than people think if it becomes a strategic reserve asset.

Bitcoin Price Outlook

On Monday, January 6, BTC rallied 3.98%, following Sunday’s 0.24% gain to close at $102,228. Significantly, BTC extended its winning streak to seven sessions.

BTC’s near-term trends will hinge on US SBR developments, BTC-spot ETF market flows, and US economic indicators. Upbeat US data could signal a more hawkish Fed rate path, potentially dragging BTC below $95k. Conversely, rising bets on a Q1 Fed rate cut could drive BTC to new highs. However, progress toward a US SBR could be crucial for BTC to break new ground.