XRP Faces Uncertainty Amid Tariff Turmoil and SEC Silence; Bitcoin Dips Below $80,000
By Bob Mason
Published: April 7, 2025, 00:42 GMT
Recent developments in the cryptocurrency market, particularly surrounding XRP and Bitcoin (BTC), have left investors facing significant uncertainty. XRP has come under pressure due to tariff announcements and a lack of communication from the U.S. Securities and Exchange Commission (SEC), while Bitcoin has dipped below the critical $80,000 support level.
Key Events Affecting XRP
The coming week is pivotal for XRP, as a closed SEC meeting is scheduled for April 10, which could significantly impact Ripple’s ongoing legal battles. Investors are awaiting the SEC’s decision concerning the appeal against the ruling on the Programmatic Sales of XRP. Brad Garlinghouse, CEO of Ripple, has indicated an expectation that the SEC might withdraw its appeal, but, as of now, the commission remains silent. This silence stands in stark contrast to the SEC’s rapid resolution of a case involving Coinbase, where the case was dismissed just a week after announcements were made.
The closed meeting will involve key figures in the SEC, including Acting Chair Mark Uyeda, Crypto Task Force Head Hester Peirce, and Commissioner Caroline Cranshaw, who will vote on whether to continue or withdraw the appeal. A withdrawal decision by the SEC could enhance the prospects for a U.S. XRP-spot Exchange Traded Fund (ETF) and stimulate institutional interest in the token.
Tariff Developments and Trade Tensions
In addition to the SEC meeting, developments relating to U.S. tariffs pose another challenge for XRP and the broader cryptocurrency market. Former President Trump’s recent implementation of a 10% baseline tariff has heightened fears of escalating global trade tensions and potential retaliatory actions from countries such as China and the European Union. These tariff issues are increasingly seen as contributing to a risk-off sentiment among investors, leading to a sell-off in riskier assets such as cryptocurrencies.
Since January 31, XRP has experienced a dramatic decline of 39%. This downturn has been attributed to several factors, including the SEC’s lack of clarity on the appeal, Trump’s exclusion of XRP from potential Strategic Reserve Asset considerations, and the broader implications of U.S. tariffs.
XRP’s Performance and Future Outlook
On April 6, XRP fell by 10.38% to close at $1.9217, significantly underperforming the overall cryptocurrency market that saw a drop of 6.88%, translating to a total market cap of $2.46 trillion. Investors in XRP are now looking for signals from the SEC regarding the legal proceedings, as well as the possibility of an XRP-spot ETF, which could potentially reverse the current trend.
Meanwhile, macroeconomic challenges, such as worsening trade tensions or increased inflation in the U.S., could pressure XRP further down toward levels around $1.7938. Nevertheless, resolution of the legal battles or favorable regulatory developments could propel XRP to revisit its all-time high of $3.5505. ### Bitcoin Dips Amid Broader Market Stress
Bitcoin joined XRP in the red, dropping below $80,000 for the first time since March 11. Concerns over rising tariffs and uncertain progress toward regulatory legislation, such as the Bitcoin Act, have contributed to this bearish sentiment. The recent drop in the USD/JPY exchange rate, following a sell-off resulting from Trump’s tariff policies, has raised alarms about a potential Yen carry trade unwind, which was a significant factor affecting market dynamics last year.
As of April 6, Bitcoin closed at $78,301, following a 6.14% decrease, further compounded by negative market sentiment. Analysts are closely watching the situation as they assess the implications for both bearish and bullish scenarios in Bitcoin’s pricing. In a bearish outlook, elevated inflation and continued tariff tensions could see Bitcoin drop toward $70,000. Conversely, in a more favorable environment of easing inflation and tariff negotiations, Bitcoin could potentially surge back to around $109,312. ### Market Sentiment and Looking Ahead
Key themes to watch in the coming days encompass developments from the SEC regarding Ripple, global trade dynamics, and progress on the Bitcoin Act alongside inflation reports. While the SEC’s responses may offer short-term relief, the longer-term outlook for cryptocurrencies hinges on achieving greater regulatory clarity and stability in market conditions.
As the financial landscape continues to evolve, both XRP and Bitcoin remain under intense scrutiny, with investors weighing potential risks against emerging opportunities in the ever-changing crypto market.
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