On January 23, President Trump signed an Executive Order (EO) establishing the Presidential Working Group on Digital Asset Markets. Trump tasked the working group with evaluating the creation of a strategic digital assets stockpile. However, they did not name potential cryptocurrencies to be included in the stockpile, disappointing investors.
XRP dropped 1.86% on June 23 since previous chatter had suggested the token’s selection as a strategic reserve asset.
The Working Group must submit its first Crypto Policy Report on Tuesday, July 22, 180 days since the EO. According to the EO:
“The Working Group shall submit a report to the President, through the APEP, which shall recommend regulatory and legislative proposals that advance the policies established in this order.”
After the signing of the GENIUS Act and the progress of the Clarity Act and the Anti-CBDC Surveillance State Act, the report would likely have a positive spin. However, the bigger question will be whether the Working Group will recommend cryptos, such as XRP, to form a national strategic reserve stockpile. Such a recommendation could tilt the supply-demand balance firmly in XRP’s favor, potentially triggering another price breakout.
According to Arkham, a crypto exchange and blockchain analytics platform, the US government’s crypto stockpile totaled $24.171 billion as of July 21. While BTC holdings stood at 198.012k, equivalent to $23.38 billion, there were no XRP holdings.
While the Working Group’s report could be a price catalyst, the SEC vs. Ripple case and the agency’s appeal vote remain crucial. Last week, the SEC stayed silent on its timeline for a vote on whether to drop the appeal against the Programmatic Sales of XRP ruling. The next SEC closed meeting is slated for July 24, four weeks after Judge Torres rejected the joint parties’ motion for an indicative ruling on settlement terms.
A formal vote to drop the appeal would enable Ripple and the SEC to file motions to dismiss their appeals, resolving the case. Given that the SEC has approved a Solana-spot ETF, an end to the case may expedite the approval of pending XRP-spot ETF applications, another potential price catalyst.
XRP rose 0.87% on Sunday, July 20, following Saturday’s 0.33% gain and closing at $3.4561. The token tracked the broader crypto market, which climbed 0.78%, lifting the total crypto market cap to $3.84 trillion.
XRP’s near-term trajectory hinges on the SEC’s appeal vote, US XRP-spot ETF-related news, and progress of the CLARITY Act.
A breakout above the July 18 all-time high of $3.6629 could signal a move toward the $4 level. A sustained move above $4 may pave the way toward the $5 mark. Conversely, a break below $3.4 could expose sub-$3 levels.
Explore our full XRP forecast here for key breakout zones and timing insights.
While XRP advanced on hopes for an end to the Ripple case, Bitcoin (BTC) extended its losing streak to three sessions. Profit-taking and rotation into alt-coins likely left BTC trailing the broader crypto market. Notably, DOGE soared 13.03%, while ETH continued its move toward $4,000, rising 4.53% on July 20.
However, the upcoming Working Group Report could revive BTC demand if the report recommends adding to the government’s existing BTC stockpile.
Meanwhile, US legislative developments, BTC-spot ETF flow trends, and broader institutional demand remain crucial for BTC’s price outlook.
The US BTC-spot ETF market extended its inflow streak to twelve sessions on July 18, with net inflows of $496.8 million, taking total weekly inflows to $2,386 million. BlackRock’s (BLK) iShares Bitcoin Trust (IBIT) dominated with weekly net inflows of $2,569 million. Significantly, IBIT last reported net outflows on June 6.
BTC dropped 0.48% on July 20, following Saturday’s 0.06% dip, closing at $117,241.
The near-term price outlook hinges on several key factors. These include the CLARITY Act’s progress on Capitol Hill, Strategic Reserve Asset-related news, and spot ETF flow trends.
Potential scenarios:
Investors should closely monitor the key drivers, which could dictate whether XRP and BTC can hit new record highs. These include:
See where analysts expect XRP and BTC to head as legal and political risks evolve.
With over 28 years of experience in the financial industry, Bob has worked with various global rating agencies and multinational banks. Currently he is covering currencies, commodities, alternative asset classes and global equities, focusing mostly on European and Asian markets.