XRP News Today:
Key Points:
SEC Chair Gensler defends crypto crackdown, citing "rife with bad actors," as Ripple case appeal deadline approaches.
XRP volatility rises ahead of SEC's January 15 appeal brief; possible moves range from $0.50 to record highs above $3.55.
Bitcoin slides below $92K as US Jobs Report and hawkish Fed concerns weigh on crypto market sentiment.
SEC Chair Gensler on Crypto: Controversy Ahead of His Departure
SEC Chair Gary Gensler drew scrutiny on Thursday, January 9, as his departure from the agency loomed. CryptoLaw commented on a recent Chair Gensler Bloomberg interview, stating,
“Gary Gensler repeated his assertion that crypto is “rife with bad actors” — which he failed to actually focus on instead of a war on all of crypto, including the many good actors trying to make the economy better.”
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The SEC Chair categorized the market into BTC and ‘the other ten or fifteen thousand projects’, saying,
“Many of them will not survive. They’re like venture capital investments, they’re not going to survive. […]. And of course, we’ve lived through a few years where they became notorious but they’re in jail, the Sam Bankman-Frieds and the CZs and the Do Kwons, where tens of billions of dollars were lost by investors.”
Chair Gensler concluded,
“It’s a field that built up around non-compliance and I’m proud of what we’ve done, building on what Chair Clayton and others have done previously. I think there’s still work to be done. […]. These are speculative, volatile investments, and they’re not getting the full and fair disclosure that’s appropriate. This is a field rife with challenges and non-compliance with the securities laws.”
SEC vs. Ripple: The Appeal Deadline Looms
Wednesday’s interview came ahead of a crucial deadline in the ongoing SEC vs. Ripple case. The SEC must file its appeal-related opening brief by January 15 just days before Chair Gensler’s final day in office on January 20. The timing is reminiscent of former Chair Jay Clayton’s filing of the Ripple lawsuit during his final days in office.
Uncertainty about the SEC’s next steps in the case contributed to the pullback from the December 3 high of $2.9070.
However, XRP has avoided a return below $1 on expectations that incoming SEC Chair Paul Atkins will reverse course on crypto-enforcement efforts and withdraw its appeal.
XRP Price Trends
On Thursday, January 9, XRP slid by 4.25%, reversing Wednesday’s 4.48% rally to close at $2.3734. Significantly, XRP underperformed the broader crypto market, which declined by 2.89%, taking the total market cap to $3.16 trillion.
XRP price trends will hinge on whether the SEC files its appeal-related opening brief. A filing could drag XRP below $2, potentially dropping to $0.50 if Ripple loses at the Second Circuit. Conversely, withdrawal could drive XRP past its 2018 record high of $3.5505.
Explore our expert analysis here on the SEC’s next move and its implications for XRP’s future.
Bitcoin Struggles Amid Fed Concerns
Meanwhile, bitcoin (BTC) extended its losing streak amid fears of a more hawkish Fed rate path. Fed jitters contributed to BTC’s pullback from the December 17 all-time high of $108,231.
This week, US labor market and services sector data reflected a robust US economy, reducing bets on an H1 2025 Fed rate cut. BTC responded, falling from a January 7 high of $102,668 to a January 9 low of $91.298.
Friday’s US Jobs Report could dictate the Fed’s near-term rate path and BTC’s price trajectory. A pickup in average hourly wages and lower unemployment could delay a Fed rate cut beyond May. A higher-for-longer Fed rate path may impact riskier assets. However, softer wage growth and higher unemployment fuel demand for riskier assets.
US BTC-Spot ETF Market Flows Reflect Uncertain Market Conditions
The US Jobs Report may also influence US BTC-spot ETF market flow trends. On January 8, the US BTC-spot ETF market reported net outflows of $568.8 million, reflecting sentiment toward the Fed rate path. Outflows contributed to BTC’s latest pullback.
Beyond the US economic calendar, news from Capitol Hill may also influence demand for BTC-spot ETFs.
On January 9, Fox Business journalist Eleanor Terrett shared news of the US Senate Banking Committee planning to launch a subcommittee on digital assets, saying,
“The move is seen as a commitment by Banking Committee Chair Tim Scott to prioritize crypto legislation and policy advancement.”
Crypto advocate Senator Cynthia Lummis is reportedly in the running to chair the subcommittee. In 2024, Senator Lummis introduced the Bitcoin Act, proposing the US government acquire one million BTC over five years to address the national debt crisis.
Her appointment may pave the way for a Strategic Bitcoin Reserve (SBR), potentially tilting the supply-demand balance firmly in BTC’s favor. Congress, the Federal Reserve, the Treasury Department, and the President must approve BTC as a strategic reserve asset.
Progress toward an SBR could drive demand for US BTC-spot ETFs and BTC to new highs. Amicus Curiae attorney John E. Deaton recently commented on the potential impact of an SBR on BTC price trends, saying,
“If the U.S. Government (USG) passes Senator Lummis’ Bill and begins buying BTC, it will no doubt cause other nations to follow suit, just like with gold. It could literally create Nation State FOMO, and if that occurs, $1M per BTC happens a lot faster than people think.”
Bitcoin Price Outlook
On Thursday, January 9, BTC declined by 2.53%, following Wednesday’s 1.96% loss to close at $92,710. Significantly, BTC dropped below $92k for the first time since December 30 before steadying.
BTC’s near-term trends depend on the US Jobs Report, BTC-spot ETF market flow trends, and Strategic Bitcoin Reserve (SBR) developments.
Tighter US labor market conditions could temper expectations of an H1 2025 Fed rate cut. A more hawkish Fed may drag BTC below the $90,742 support level. Conversely, higher unemployment and softer wage growth could reignite bets on a March Fed rate, pushing BTC toward its record high of $108,231.
However, progress toward a US SBR could be crucial for BTC to break new ground.
Market Outlook for XRP and BTC
Both XRP and BTC face heightened volatility driven by regulatory developments and macroeconomic trends. XRP’s trajectory hinges on the SEC’s appeal decision, while BTC’s performance depends on labor market data, ETF flows, and potential progress toward a Strategic Bitcoin Reserve. Broader regulatory changes and monetary policy shifts will remain critical to shaping market sentiment.
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