XRP News Today: Ripple and SEC Near Deal, XRP Surges to 10-Day High; BTC at $102k

Ripple Breakthrough? SEC Moves to Settle

There was a major development in the SEC vs. Ripple case on Thursday, May 8, driving XRP to a ten-day high of $2.3301. The SEC filed a settlement letter with the courts, requesting Judge Analisa Torres to amend the Final Judgment. US attorney James Filan shared the court filing and outlined the next steps:

“Next Steps: Judge Torres needs to provide an indicative ruling as to whether the Court would: (1) dissolve the injunction and release the escrow with $50 million going to the SEC and the balance back to Ripple; (2) if Judge Torres provides the indicative ruling, the SEC and Ripple will ask the Second Circuit for a limited remand back to Judge Torres to ask for the relief described above; (3) upon the granting of the remand, the SEC and Ripple will file a motion with Judge Torres asking for the relief described above.”

Filan added that once the injunction is lifted and funds are distributed, both the SEC and Ripple will ask the Court of Appeals to dismiss both the appeal and cross-appeal, effectively ending the case.

Legal Experts Raise Hopes for Closure

Pro-crypto lawyer Bill Morgan noted uncertainty remains, stating:

“There is no certainty that judge Torres will grant the relief the parties seek pursuant to the settlement agreement. She must form a view that it is in the public interest.”

However, Morgan pointed to strong public support for Ripple, saying:

“The fact that the section of the public most concerned with the outcome of this case are millions of XRP holders and almost 80,000 of them signed up to be represented by John E. Deaton in the case against the SEC and there is no evidence that a single XRP holder in the world supported the SEC then I think the judge can conclude it is in the public interest to dissolve the injunction and reduce the fine to USD$50 million. But that is just my view.”

Ripple Case and ETF Implications

A favorable court ruling and withdrawal of the appeals could pave the way for an XRP-spot ETF market. Notably, the SEC filed the settlement letter well ahead of a court-ordered status update, raising speculation about an XRP-spot ETF approval.

In April, the SEC delayed its review of the Franklin XRP Fund by 45 days, pushing the next deadline to June. A swift end to the Ripple case could accelerate the SEC’s review of the Franklin Templeton application and potentially drive XRP demand. However, if the settlement process drags into Q3 2024, the SEC may delay any decisions, which could cap near-term gains.

XRP Outlook: Legal Momentum and ETF Trends

XRP surged 9.43% on Thursday, May 8, reversing Wednesday’s 1.31% loss to close at $2.3273. The token outperformed the broader crypto market, which rallied 7.95%, taking the total crypto market cap to $3.18 trillion.

Short-term catalysts include:

• Court rulings and appeal resolution.
• XRP-spot ETF developments.
• Broader macro trends, such as U.S.-China trade talks.

Key support sits at $2.10. A break above $2.50 may fuel a push to $3.00 and test the all-time high at $3.5505.

See our full XRP forecast here.

Bitcoin Jumps to $100,000 on Trade Developments

While XRP soared on legal news, bitcoin (BTC) surged on trade developments. The US and UK signed a trade agreement on May 8 ahead of US-China trade talks. Markets view the deal as a potential blueprint for future trade agreements, easing stagflation fears.

On May 7, Fed Chair Powell warned that tariffs could fuel inflation and weigh on the economy. Powell signaled a wait-and-see policy stance, prioritizing inflation.

Market intelligence platform Santiment commented on BTC’s return to $100,000, stating:

“Cryptocurrency has continued its rally, with Bitcoin breaching the all-important $100K psychological resistance for the first time since Feb. 3rd. Sentiment is quite bullish at the moment, which can be a double-edged sword for upcoming price movement from here.”

Santiment elaborated:

“On one hand, retail FOMO can add a bit of extra fuel to this rally as major media outlets spam Bitcoin’s 3-month milestone and bring in many new entries to the space. On the other hand, we typically see rallies put on the brakes when there is an overwhelming amount of calls related to ‘higher’ or ‘above’ (in relation to crypto) like we’re seeing now.”

Looking ahead, Santiment called on investors to monitor fear and greed calls in the days ahead, saying:

“If prices get stagnant now, and sell calls begin to take over again, it would clear a pathway for Bitcoin’s new all-time high.”

Trade Developments Boost Institutional Demand

The US-UK trade agreement drove institutional demand on May 8, with US-BTC-spot ETF issuers reporting net inflows. According to Farside Investors:

• ARK 21Shares Bitcoin ETF (ARKB) saw net inflows of $13.1 million.
• Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $35.3 million.

Excluding pending flow data for BlackRock’s (BLK) iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market saw total net inflows of $48.4 million on May 8, adding to Wednesday’s net inflows of $142.3 million. Notably, IBIT may extend its inflow streak to eighteen sessions.

ETF Store President Nate Geraci commented:

“The streak remains alive… Now 18 straight days of inflows into iShares Bitcoin ETF. Bitcoin ETFs overall w/ inflows 15 of past 18 trading sessions.”

BTC Price Outlook: Policy and Legislation in Focus

BTC rallied 6.27% on May 8, following Wednesday’s 0.17% gain, closing at $103,097, its highest close since January 30.

Key drivers in the coming days include Fed commentary, ETF flows, and progress on the Bitcoin Act.

Potential scenarios:

• Bearish Scenario: Escalating US-China tensions, hawkish Fed guidance, US recession jitters, resistance to the Bitcoin Act, and ETF outflows. Bearish sentiment could send BTC toward $90,000.
• Bullish Scenario: A US-China trade deal, dovish Fed rhetoric, pro-crypto legislation, and ETF inflows. Bullish sentiment could drive BTC above the record high of $109,312.

Senator Cynthia Lummis recently reintroduced the Bitcoin Act, proposing the US acquire one million BTC over five years with a 20-year hold. If passed, the bill would significantly constrain BTC’s circulating supply.

What to Watch

Investors should track developments in the Ripple case, BTC ETF flows, and key US economic updates. A favorable SEC decision could boost XRP, while the broader market awaits regulatory clarity and global macro signals.

Read analysts’ insights on what could drive cryptocurrencies to new highs.