XRP Eyes $3 Amid ETF Buzz and Legal Developments, While Bitcoin Faces Pressure from Tariff Concerns
By Bob Mason | Published July 8, 2025
Cryptocurrency markets are experiencing divergent trends this week as XRP gains momentum fueled by optimism around the SEC lawsuit settlement and prospects of an XRP-spot exchange-traded fund (ETF), while Bitcoin (BTC) encounters headwinds linked to renewed U.S. tariff pressures. Here is a detailed overview of the latest developments shaping these two major digital assets.
XRP Surges on Legal Hopes and ETF Speculation
On Monday, July 7, XRP rallied impressively, reaching a six-week high of $2.35. This spike in price reflects growing investor optimism that the ongoing lawsuit initiated by the U.S. Securities and Exchange Commission (SEC) against Ripple Labs might be nearing resolution.
Key to the bullish sentiment is the anticipated SEC vote scheduled for July 10 regarding whether the agency will drop its appeal over a previous ruling related to Ripple’s programmatic sales of XRP tokens. The SEC and Ripple had earlier agreed in principle to terminate their appeals if Judge Analisa Torres vacated an injunction barring XRP sales to institutional investors and significantly reduced Ripple’s penalty from $125 million to $50 million in fines.
Although Judge Torres declined two joint motions for an indicative ruling that would have facilitated settlement terms, Ripple made a notable move by withdrawing its cross-appeal on June 27, suggesting a potential willingness to compromise and settle. Market watchers interpret this as signaling the likelihood of the SEC eventually following suit and dropping its appeal at the upcoming meeting, which could remove major legal uncertainty for XRP.
Despite lingering uncertainty, legal analysts have dismissed rumors that the SEC vs. Ripple case is a manufactured spectacle designed to manipulate XRP’s price for strategic partnerships worldwide. Industry veterans, such as pro-crypto attorney Bill Morgan and former SEC lawyer Marc Fagel, emphasize that enforcement actions by the SEC are grounded in firm regulatory principles rather than staged proceedings.
The outlook for XRP remains cautiously optimistic. Should XRP break through its recent high of $2.35 and surpass the May peak of $2.65, bulls could target the psychologically significant $3.00 price level. A sustained rally could even challenge the 2025 high of $3.40, recorded on Binance earlier this year. Conversely, a failure to hold support near the 50-day exponential moving average (EMA) around $2.20 could invite a deeper retracement toward the 200-day EMA.
ETF Developments Add Fuel to XRP’s Rally
Another bullish dynamic is the chatter surrounding XRP’s inclusion in broader crypto ETFs. The SEC recently approved a rule change for the Grayscale Digital Large Cap Fund (GDLC), which holds a diversified basket including Bitcoin, Ethereum, Cardano, Solana, and XRP, to convert into an ETF. However, the launch remains delayed due to an SEC-imposed stay.
Market participants believe the eventual launch of GDLC as an ETF could pave the way for standalone XRP-spot ETFs, a development that would provide a significant boost to XRP’s liquidity and price discovery. The combination of potential legal resolution and ETF approvals forms the core of XRP’s bullish narrative.
Bitcoin Faces Pressure on Tariff and Trade News
In stark contrast to XRP’s upward momentum, Bitcoin saw a 0.87% price decline on July 7, closing at approximately $108,284. This downward pressure stems largely from renewed concerns over U.S. trade tariffs. Recently, President Trump reintroduced tariffs resembling levels seen on Liberation Day (April 2), sparking fears of escalating trade tensions.
Financial markets remain sensitive to such developments as tariffs can exacerbate inflationary risks, thereby complicating the Federal Reserve’s monetary policy decisions. Increased tariffs could put a damper on anticipated interest rate cuts by the Fed, undermining risk asset appeal and constraining Bitcoin’s price growth in the short term.
The equity markets have mirrored this trepidation, with the technology-heavy Nasdaq Composite Index falling by nearly 1% amid trade worries.
US Bitcoin Spot ETF Demand Remains Robust
Despite the macro pressures, inflows into U.S.-based Bitcoin spot ETFs have remained strong, cushioning the downside. Data from Farside Investors highlighted significant net inflows on July 7 for key funds such as Fidelity Wise Origin Bitcoin Fund (FBTC) with $66 million and Grayscale Bitcoin Mini Trust (BTC) with $6.2 million in net new investments.
However, some products like the ARK 21Shares Bitcoin ETF (ARKB) and the legacy Grayscale Bitcoin Trust (GBTC) experienced combined outflows of $20.3 million. BlackRock’s iShares Bitcoin Trust (IBIT) awaits flow data but has been a consistent inflow performer recently. Collectively, spot ETF inflows totaled $51.9 million, marking a possible third consecutive session of positive fund flows.
Bitcoin’s near-term price trajectory will hinge on multiple factors, including evolving trade policies, legislative developments affecting cryptocurrencies, Federal Reserve policy statements, and continued investor appetite for spot ETFs.
Looking Ahead
Overall, XRP’s path to $3 hinges on the timely withdrawal of the SEC’s appeal and progress in ETF approvals, potentially unlocking renewed investor interest and price appreciation. Meanwhile, Bitcoin’s journey remains intertwined with broader macroeconomic variables such as trade tensions, interest rate expectations, and regulatory clarity.
Investors and traders alike will be closely monitoring the SEC’s July 10 meeting for decisive signals and gauging market responses to ongoing U.S.-China trade dynamics that continue to influence risk assets, including the cryptocurrency space.
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