Crypto News

Navigating the Ripple: SEC’s Stance on XRP and Bitcoin’s Market Challenges Amid Uncertain Times

March 11, 2025
Smart Money

XRP and Broader Crypto Market Face Pressure Amid SEC Developments

The cryptocurrency market, including XRP, is currently grappling with selling pressure, despite notable changes in the U.S. Securities and Exchange Commission’s (SEC) approach to digital assets. Market participants are looking ahead to a pivotal meeting scheduled for March 13, which may influence the direction for XRP and potentially reshape market sentiment.

SEC’s Influence on Market Dynamics

While XRP has been facing significant selling pressure, analysts suggest that the SEC’s upcoming Closed Meeting could shift the narrative. The agency is expected to reveal its appeal strategy concerning the recent ruling on the Programmatic Sales of XRP in the ongoing Ripple case. This anticipation has left XRP vulnerable to broader market trends, leading to a substantial decline from its January peak of $3.3999. The SEC’s recent dismissal of lawsuits against major cryptocurrency exchanges Coinbase and Kraken heightens speculation that the agency could opt to withdraw its appeal at any moment. During the March 13 meeting, SEC Acting Chair Mark Uyeda and Commissioner Hester Peirce, who leads the new Crypto Task Force, will have the opportunity to deliberate and potentially cast votes regarding the Ripple case.

If the SEC chooses to withdraw its appeal, it could result in XRP decoupling from prevailing market challenges, pivoting investor attention towards Ripple’s expansion initiatives and the potential launch of a U.S. XRP spot Exchange-Traded Fund (ETF).

XRP’s Recent Price Performance

As of March 10, XRP experienced a notable decline, falling 5.33% to close at $2.0214, following an 8.22% drop the day prior. XRP’s performance remains below that of the overall cryptocurrency market, which recorded a decline of 3.44%, with a total market cap resting at $2.52 trillion.

Several uncertainties loom over XRP’s market outlook, including questions regarding the SEC’s appeal strategy, the implications of former President Donald Trump’s SBR Executive Order, and persistent fears of a U.S. recession.

Key Factors Affecting XRP’s Price

Analysts have outlined critical factors that may drive XRP’s price movements:

  • SEC Appeal Strategy: The outcome of the SEC’s deliberations could significantly impact investor confidence and demand for XRP.
  • Broader Market Conditions: General trends in the cryptocurrency market, impacted by macroeconomic factors, remain vital.
  • Adoption and ETF Prospects: Increased adoption of XRP and developments surrounding a potential XRP spot ETF could restore bullish sentiment among investors.

Broader Cryptocurrency Market Trends

In addition to XRP, Bitcoin (BTC) has also faced heightened volatility. On March 10, BTC fell below $80,000 for only the second time since the record rally following Trump’s election victory, which had pushed prices to an Inauguration Day high of $109,231. Market sentiment has soured over disappointment in the Trump Administration’s SBR Executive Order and prevailing fears concerning a possible recession in the U.S. According to Santiment, a crypto market intelligence platform, social media sentiment reveals a significant level of fear, with discussions around Bitcoin’s price showing associations with levels below $70,000. However, a glimmer of hope emerges as Santiment notes that since March 3, wallets holding ten or more BTC have accumulated nearly 5,000 Bitcoins, suggesting a potential bullish turn if these large stakeholders continue their accumulation.

Impact of ETF Outflows on Bitcoin Prices

The recent data indicates that the Bitcoin spot ETF market has encountered substantial net outflows, totaling $739.2 million during the week ending March 7, thereby extending a four-week streak of losses. Notably, Fidelity’s Wise Origin Bitcoin Fund and Grayscale’s Bitcoin Trust reported outflows of $134 million and $20.6 million, respectively.

Julio Moreno, Head of Research at CryptoQuant.com, expressed concerns regarding institutional demand, observing that U.S. spot ETFs have been net sellers of Bitcoin this year. This trend contrasts sharply with last year when these entities had purchased a net total of 165,000 Bitcoins by this time.

Price Predictions for Bitcoin

As of March 10, Bitcoin experienced a decline of 2.62%, concluding at $78,620. Concerns regarding a recession triggered by rising tariffs have negatively impacted both institutional and retail demand, situating Bitcoin beneath the $80,000 mark for the first time since November 9, 2022. Potential price scenarios forecasted for Bitcoin include:

  • Bearish Scenario: Sustained trade tensions, resistance to the Bitcoin Act, and continued ETF outflows could push Bitcoin down towards $70,000.
  • Bullish Scenario: If trade tensions ease, support for the Bitcoin Act grows, and ETF inflows resume, Bitcoin could rise closer to $109,312. As the markets await the SEC’s forthcoming decisions and the broader economic landscape continues to evolve, both XRP and Bitcoin investors remain in a state of cautious observation. The outcome of impending events may ultimately reshape the cryptocurrency marketplace in significant ways.