XRP Price Drops After SEC Ruling, Bitcoin Holds Strong Above $100,000

By Bob Mason
Published: May 16, 2025, 02:26 GMT+00:00

In a significant development in the ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs, XRP experienced a sharp decline of 6.5% on May 15, 2025, falling to $2.3551. The setback came after Judge Analisa Torres denied both parties’ motion to lift an injunction that is currently prohibiting the sale of XRP to institutional investors.

Judge Denies SEC and Ripple’s Settlement Request

The ruling in the SEC vs. Ripple case has sent shockwaves through the cryptocurrency market. In her decision, Judge Torres specifically rejected the SEC and Ripple’s request for an indicative ruling that could lead to a lifting of the current sales prohibition. She also dismissed a call to reduce the $125 million penalty imposed on Ripple, stating, “If jurisdiction was restored to this Court, the Court would deny the parties’ motion as procedurally improper.”

Pro-crypto lawyer Bill Morgan highlighted the procedural steps that will follow this ruling. According to him, both parties are expected to file a joint motion that correctly adheres to procedural rules. If an indicative ruling is achieved, they plan to appeal to the Court of Appeals for a limited remand, which could pave the way for further negotiations and a potential resolution to the case.

Ripple’s Chief Legal Officer, Stuart Alderoty, emphasized that the ruling does not change any of Ripple’s past victories, particularly the determination that XRP is not classified as a security. He expressed confidence in the collaborative approach taken by both Ripple and the SEC to resolve the matter with the Court.

XRP-Spot ETF Chances Remain High

Despite the adverse court ruling, optimism regarding the potential approval of an XRP Spot Exchange-Traded Fund (ETF) in 2025 remains strong. According to insights from Polymarket, the likelihood of the SEC granting approval rose from 80% to 81% shortly after the ruling. Market analysts suggest the approval process may encounter delays, especially given the pending court decisions that could impact various XRP-spot ETF applications. Interest remains high, however, as demand continues to be driven by the broader market consensus.

Currently, XRP’s price performance reflects a complex market sentiment as the cryptocurrency was able to hold above $2, demonstrating investor confidence in the eventual dismissal of the SEC’s appeal on XRP’s Programmatic Sales ruling.

Bitcoin Maintains Momentum Above $100,000

In contrast to the poor performance of XRP, Bitcoin (BTC) managed to stay resilient amidst the turmoil surrounding Ripple, trading above the $100,000 mark for the seventh consecutive session. By the close of trading on May 15, BTC showed a slight increase of 0.24%, bringing its price to $103,820. The stability in BTC’s price can be attributed to easing trade tensions and sustained demand for BTC-spot ETFs.

Investor confidence has been bolstered by positive developments, including ongoing discussions pertaining to trade agreements and tariff reductions. This renewed sentiment could be instrumental in further driving BTC’s trajectory in the coming weeks.

However, analysts are paying close attention to the potential for outflows in the BTC-spot ETF market, evidenced by significant activity on May 15, where several major funds reported net outflows totaling approximately $294.8 million. These outflows highlight an area of concern for investors as they shift their focus toward legislative and economic developments impacting the broader cryptocurrency landscape.

Future Market Outlook

The future price trajectories for both XRP and Bitcoin will largely depend on upcoming court rulings, news regarding XRP-spot ETFs, and macroeconomic indicators, including trade updates and consumer sentiment data.

XRP’s Price Outlook: The immediate-support level for XRP is currently set at $2.3, with a potential bullish signal if it can break above the recent high of $2.6553, which could lead to further upside movement towards the $3.00 mark.

Bitcoin’s Price Dynamics: Market sentiment appears cautiously optimistic for BTC, with potential bullish scenarios hinging on improved trade relations and legislative actions. Conversely, bearish scenarios could emerge from rising trade tensions and unfavorable consumer sentiment data.

What to Watch

Investors should remain vigilant regarding the ongoing developments in the Ripple legal case, as well as forthcoming ETF decisions and key macroeconomic data releases. Positive outcomes in these areas could enhance XRP’s market sentiment, while factors such as policy clarity and risk appetite will continue to influence broader cryptocurrency market trends.

For a comprehensive analysis of ongoing developments and predicted trends in cryptocurrency, visit our dedicated sections on price forecasts and market insights.

About the Author
Bob Mason is a seasoned financial journalist with over 28 years of experience covering currencies, commodities, and global markets. He focuses primarily on European and Asian market trends and developments.

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