XRP Market Sentiment Changes as SEC Appeals Retreat, Tariffs Create Uncertainty

By Bob Mason
Updated: April 11, 2025

Market updates surrounding the cryptocurrency XRP have taken a notable turn, driven primarily by a recent pause in the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). However, looming tariff threats impact broader market sentiment, particularly for Bitcoin (BTC), which has experienced a downturn.

SEC vs. Ripple: Optimism Builds Amid Legal Developments

On April 10, 2025, a joint motion was filed by both Ripple and the SEC requesting to put the appeal process on hold, signaling a potential step towards a settlement. U.S. defense attorney James Filan shared that the parties agreed to hold their appeal in abeyance while awaiting the SEC’s approval for the settlement terms. This development comes just ahead of an April 16 deadline for Ripple to submit its reply brief related to the appeal.

This ongoing case has significant implications for the future of XRP as the agreement could lead to a formal withdrawal of the SEC’s challenge. Pro-crypto lawyer Bill Morgan noted that the SEC’s acknowledgment of the settlement represents a critical moment, with anticipation surrounding what ruling might be sought from Judge Analisa Torres.

Former SEC lawyer Marc Fagel added complexity to the situation, suggesting that the appeal’s withdrawal could depend on whether Judge Torres reconsiders the injunction that currently restricts XRP sales to institutional investors. Analysts believe that a favorable ruling could enhance Ripple’s U.S. expansion and increase XRP demand.

XRP’s Price Movements: Market Reactions

Despite optimism related to the legal proceedings, XRP experienced a slight decline of 4.24% to close at $1.9649 on April 10, 2025. This drop partially countered a previous gain of over 14% seen the day before. The broader crypto market, which also faced a decline of 3.54%, was buoyed by factors such as tariff concerns and recession fears impacting overall demand for risk assets, including cryptocurrencies.

As investors look ahead, several potential catalysts may dictate XRP’s price trajectory, including:

• Legal Developments: The SEC’s pending decision on its appeal and any ruling from Judge Torres could significantly impact XRP’s valuation.
• ETF Speculations: Prospects for an XRP-spot exchange-traded fund (ETF) may drive institutional investment, increasing demand for XRP. Approval could mark a turning point, while delays may hinder any bullish momentum.
• Macroeconomic Pressures: Ongoing tariff uncertainties and shifts in economic data from the U.S. could result in fluctuations, with bearish scenarios potentially dragging XRP down to $1.70, while positive developments might lead it toward $3.00. ## Bitcoin Experiences a Drop Amid Trade War Tensions

XRP’s decline coincided with a significant drop in Bitcoin, which fell below the $80,000 mark, clearly affected by heightened concerns over U.S.-China trade dynamics. As investors shifted towards safer assets, the Nasdaq Composite Index reported a 4.31% decline, while gold rose sharply by nearly 3%.

The backdrop of escalating tariffs, particularly following statements from officials suggesting countermeasures from China, has left many investors wary. Robin Brooks, a senior fellow at the Brookings Institute, articulated that the current state of U.S.-China relations heavily influences market vulnerability, emphasizing the critical importance of these negotiations.

Recent BTC ETF Outflows Signal Market Concerns

Recent data released by Farside Investors indicated significant outflows from key Bitcoin ETFs. The Fidelity Wise Origin Bitcoin Fund, among others, experienced substantial withdrawals, totaling approximately $149.5 million within the past ten sessions. This trend has added to fears surrounding Bitcoin’s price stability and overall market health.

As of April 10, Bitcoin saw a decline of 3.63%, bringing its price to $79,593. Market analysts suggest two potential scenarios for Bitcoin’s future: a bearish outlook influenced by ongoing trade tensions and recession indicators could send its price as low as $70,000; conversely, positive developments could see Bitcoin rally toward $109,312. ## Looking Ahead: Key Factors Influencing the Market

As the cryptocurrency market adjusts in response to these developments, several key themes warrant close attention in the coming days:

• Updates and resolutions related to the SEC vs. Ripple case.
• Developments involving global trade policies and potential tariff negotiations.
• Progress on legislative efforts such as the Bitcoin Act.
• Releases of economic indicators, including producer prices and consumer sentiment.
• Trends in ETF flows and how they reflect institutional investor behavior.

In conclusion, while recent SEC movements have brought a short-term lift in sentiment for Ripple and XRP, concerns regarding global tariffs and broader market conditions continue to pose challenges. The coming weeks will be critical as investors track developments that could reshape the cryptocurrency landscape.

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