XRP News Today: SEC Appeal Outcome Holds Key for XRP as BTC-Spot Inflows Impress

SEC vs. Ripple: Settlement Rumours Surface

On Wednesday, October 30, an ongoing case involving Ripple Labs took center stage in the Californian courts. Judge Phyllis Hamilton confirmed receipt of the parties’ motion for entry of final judgment and stay. However, Judge Phyllis also requested,

“The parties to consider an alternative resolution of filing a voluntary dismissal without prejudice of the remaining individual claim, subject to being re-filed after resolution of the appeal on the class claims.”

The court order added,

“If the parties are amenable to this alternative resolution, the court requests that they file an amended proposed order – and if the parties are not amenable, the court requests that they file a notice to that effect by November 4, 2024.”

SEC vs. Ripple: Appeal Outcomes Remain Crucial for XRP and the Crypto Market

While this week’s court order drew investor interest, the ongoing SEC vs. Ripple case remains the focal point. Investors await SEC and Ripple’s appeal-related filings to assess the strength of their respective cases. Significantly, the SEC is challenging the Programmatic Sales of XRP ruling.

In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test. If the SEC successfully appeals the ruling, US crypto exchanges could delist XRP, impacting adoption, volumes, and price trends as exchanges would fall under the purview of the SEC if they continue listing XRP.

The SEC must file its appeal-related opening brief by January 15, 2025, days before the inauguration of the President of the United States. A Trump victory on November 5 could fuel speculation about the SEC withdrawing its appeal. Trump pledged to fire SEC Chair Gary Gensler on his first day in office.

An end to SEC Chair Gensler’s reign of regulation through enforcement and its appeal would be a boon for XRP and the broader market.

XRP Price Action

On Wednesday, October 30, XRP declined by 1.02%, partially reversing a 1.72% gain from the previous session, closing at $0.5224. Significantly, XRP ended a four-day winning streak and underperformed compared to the broader crypto market. The total crypto market cap slipped by 0.50% to $2.381 trillion.

Increasing chances of Trump winning the US Presidential Election could support an XRP breakout from the crucial $0.55 level. Conversely, XRP may drop below $0.50 if Kamala Harris gains more support in the final week of the Presidential Election race.

Bitcoin Dips on US Labor Market Data

BTC joined XRP in negative territory on Wednesday and fell short of the $73,000 handle. Hotter-than-expected US labor market data reduced bets on a December 25-basis point Fed rate cut, impacting BTC demand.

The ADP reported a 233k jump in employment in October, up from 159k in September. Economists had predicted a more modest 115k increase. Tighter labor market conditions could boost wages, fueling consumer spending and demand-driven inflation. A higher inflation outlook could signal a less dovish Fed rate path.

According to the CME FedWatch Tool, the chances of a 25-basis point December Fed rate cut fell from 74.1 on October 29 to 69.7 on October 30.

US BTC-Spot ETF Market Inflows Eye a Six-Day Inflow Streak

On Tuesday, October 29, the US BTC-spot ETF market reported net inflows of $870.1 million, the largest since June 4 ($886.6 million). Significantly, iShares Bitcoin Trust (IBIT) saw net inflows of $642.9 million. Expectations of Trump winning the US Presidential Election drove demand for US BTC-spot ETFs.

However, Wednesday’s labor market data dampened demand for US BTC-spot ETFs. According to Farside Investors:

• Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $12.6 million on Wednesday, October 30. (Previous day: +$133.9 million).
• Grayscale Bitcoin Mini Trust (BTC) saw net inflows of $8.0 million. (Previous day: +29.2 million).
• ARK 21Shares Bitcoin ETF (ARKB) reported net inflows of $7.2 million. (Previous day: +$12.4 million).
• However, Bitwise Bitcoin ETF (BITB) had net outflows of $23.9 million. (PD: +$52.5 million).

Excluding iShares Bitcoin Trust (IBIT) flow data, the US BTC-spot ETF market reported total net inflows of $21.3 million on October 30. While inflows may ease back on Wednesday, October has been impressive, with $4,489.6 million of net inflows with one day remaining, the largest since March 2024 ($4,636.8 million).

The surge in demand for BTC-spot ETFs supported a climb to $73,000 for the first time since March 2024.

Bitcoin (BTC) Price Action

On Wednesday, October 30, BTC slipped by 0.37%, partially reversing Tuesday’s 4.11% rally to close at $72,359. Significantly, BTC also ended its four-day winning streak.

On Thursday, October 31, US economic indicators, including the Personal Income and Outlays Report, could impact BTC demand. Softer inflation and personal income/spending trends could raise bets on Fed rate cuts in November and December. A more dovish Fed rate path and expectations of a soft US economic landing could drive demand for riskier assets.

Market-friendly US data and a jump in US BTC-spot ETFs could drive BTC through its all-time high of $73,808 to target $75,000.