Ripple’s legal tussle with the US SEC has fueled speculation of yet another catalyst, providing hope. The cryptocurrency XRP is the “focal point” of this confounding dispute. In addition, easing trade tensions has boosted risk appetite, driving up Bitcoin’s gains even further.
XRP SEC Momentum: One Step Closer to the Last Chapter Settlement
The appointment of Paul Atkins as SEC Chair X has brought forth some much-needed optimism into the crypto legal sphere, as he is one of the staunchest advocates of the belief that the agency is about to take a vote to rescind the appeal and settle Judge Torres’ Final Judgment Ripple case. The anticipated outcome has garnered interest towards XRP and XRP alone, giving off the illusion that demand levels have indeed risen.
An active defender of cryptocurrency, Morgan claimed that interest from both retail and institutional investors, alongside activity from XRP US futures markets, is on the rise. He also mentioned the surge in XRP addresses astonishingly right before Coinbase launched its XRP derivative products, where active wallets increased by 67.5% between April 19th and 20th. Consensus regarding the XRP Futures release indicates that this enables further progress towards the potential creation of spot ETFs for the cryptocurrency and influences its price movements. Clarifying the essence of XRP, Gilbertie, CEO of Teucrium, said, “XRP has the most utility. Bitcoin is merely a store of value. It has no use case.” Teucrium, who earlier this month issued the first US XRP ETF, the 2X XRP ETF, sparked speculation that they would propose a non-leveraged XRP spot ETF for approval following the SEC’s apparent acceptance towards leveraged products.
Bitcoin’s Renewed Ascent: Eyes on the $100k Mark
The appreciation of XRP has occurred alongside a broader shift in sentiment toward cryptocurrencies, with Bitcoin (BTC) continuing to rise to its all-time highs, unlike during the US-China trade conflict.
The US Treasury Secretary Scott Bessent’s hints at de-escalation alongside easing of tensions have improved the overall conditions for risk-on assets, including Bitcoin. Usually a safe haven, gold plummeted by 2.75% on April 23rd, further demonstrating the dominance of risk-on sentiment. The Nasdaq Composite Index surged as well, rising by 2.50%.
The apparent US administration’s China trade policy reversal is believed to be the biggest driver influencing the current price of Bitcoin. Following the surge in the tariff war, Bitcoin dropped from an all-time high of $109,312 in January to $74,394 in March. However, after the steep decline, Bitcoin’s price is now looking to reach the $100,000 mark, especially if a US-China agreement is made.
Institutional Inflows: Fueling Bitcoin’s Bullish Momentum
The optimistic scenario is further complemented by strong inflows to US BTC-spot ETFs. Estimates suggest these bullish sentiments will continue on April 23rd, further pushing the price of Bitcoin. On April 22nd, ETF issuers reported a remarkable $912.7 in total net inflow, which in turn elevated the Bitcoin price. This was the highest single-day inflow since January 17th.
Farside Investors has noted astonishing net inflows across multiple Bitcoin ETFs, spearheaded by the ARK 21Shares Bitcoin ETF (ARKB) at $129.5 million, Fidelity Wise Origin Bitcoin Fund (FBTC) at $124.4 million, and Grayscale Bitcoin Mini Trust (BTC) at $29.8 million. With the exception of pending data from BlackRock’s iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market as of April 23rd recorded healthy net inflows of $273.8 million.
As highlighted by the analyst Eric Balchunas, this sort of wealth-demanded ETF activity ‘spot bitcoin ETFs went Pac-Man mode,’ which lends itself to how outstretched the participation was alongside a multitude of ETF offerings. Additionally, the inflow of institutional capital fortifies the Bitcoin narrative.
As of now, positively surrounding Ripple’s lawsuit resolution with easing trade tensions globally.
This puts us at the right place for an always expected breakout.
Due to Bitcoin’s heightened inflows alongside improved risk appetite, Bitcoin has its sights on $100,000. Ethereum and its active wallets positioned it with the launch of US futures for a potential breakout towards its all-time high. The remainder of the crypto market has a cautiously optimistic posture based on the outcome of the Ripple lawsuit and globally relaxing trade tensions.
Investors should closely follow the trade relations between the US and China, the legal proceedings of the Ripple case, and the continued investments into Bitcoin ETFs, since these are expected to have a direct impact on market developments.
