The ongoing battle between Ripple and the U.S. Securities and Exchange Commission (SEC) continues to stir market sentiment, particularly surrounding XRP. On April 10, the market was met with news that may have the potential to influence both legal outcomes and investor sentiment, but macroeconomic pressures–especially related to tariffs–cast a shadow over the crypto landscape.
Despite a retreat in the SEC’s appeal, XRP’s price faced a decline, while Bitcoin (BTC) also slid as trade tensions escalated. This article showcases a deep exploration of the topic by the team at NordaLueur.
SEC vs. Ripple: Appeal Pause Boosts Settlement Hopes
On April 10, a pivotal legal development emerged as the SEC agreed to pause its appeal against Ripple, signaling potential positive outcomes for the company’s legal battle. U.S. defense attorney James Filan shared that a joint motion had been filed to hold the appeal in abeyance due to an agreement to settle.
This decision, awaiting SEC Commission approval, has brought relief to Ripple investors, as it suggests that the legal showdown could soon come to an end.
The news coincided with the April 16 deadline for Ripple to submit its appeal-related reply brief, and this move to pause the appeal could be seen as a positive step toward settlement.
If this development is confirmed, it could mark the end of the SEC’s challenge to Ripple’s programmatic sales of XRP. Bill Morgan, a pro-crypto lawyer, praised the move, suggesting it was a necessary step before the deadline, signaling that the SEC is now acknowledging a potential settlement.
However, the withdrawal of the appeal depends on several factors, most notably the actions of Judge Analisa Torres, who could revisit an injunction that has prohibited Ripple from selling XRP to institutional investors. The decision on this injunction is critical, as it could influence whether the appeal–and the associated legal uncertainty for Ripple–continues.
XRP Price Outlook: Legal and ETF Catalysts
Despite these positive legal developments, XRP’s price faced a 4.24% dip on April 10, reversing some of the previous day’s 14.32% rally. The decline came amidst broader market uncertainty, with macroeconomic risks weighing heavily on investor sentiment. On the same day, the total cryptocurrency market cap fell 3.54%, driven by concerns about U.S. tariffs and the economic outlook.
Looking forward, several key catalysts could impact XRP’s price trajectory:
- SEC vs. Ripple Settlement: A formal SEC appeal withdrawal could solidify XRP’s legal standing, pushing the price toward its previous all-time high of $3.55.
- XRP-Spot ETF: The potential approval of an XRP-spot ETF could open the floodgates for institutional investors, boosting demand for XRP. However, delays or uncertainty surrounding the approval process could cap XRP’s upside momentum.
- Macroeconomic Risks: Risks associated with tariffs and weak U.S. economic data could put downward pressure on XRP, potentially driving the price to $1.70. Conversely, positive data or tariff relief could help XRP climb toward $3.00.
Bitcoin Slides Amid US-China Trade Tensions
XRP’s struggles were not isolated, as Bitcoin (BTC) also faced challenges. On April 10, BTC dipped by 3.63%, partially reversing the previous day’s 8.27% rally, to close at $79,593. The dip came amid growing concerns about the impact of U.S.-China trade tensions.
Although there had been temporary relief from tariff discussions earlier in the week, investors became increasingly concerned about the economic fallout from tariffs, triggering a flight to safety.
The US President’s recent tariff pause failed to ease market worries, and reports of China’s plans for countermeasures to new US tariffs reignited fears of an escalating trade war. Robin Brooks, a senior fellow at the Brookings Institute, emphasized the significance of U.S.-China relations for global markets, remarking that the trade dynamics between the two countries are the primary concern for investors.
The Nasdaq Composite Index dropped 4.31% on April 10, while gold surged, reflecting a shift toward safe-haven assets in response to rising geopolitical risks.
BTC-Spot ETF Outflows Extend as Risk Aversion Builds
In addition to geopolitical tensions, the growing risk aversion among investors has also led to significant outflows from Bitcoin-related exchange-traded funds (ETFs). According to Farside Investors, Bitcoin ETFs saw net outflows totaling $149.5 million on April 10, marking a continuation of a downward trend in ETF flows.
These outflows were particularly prominent from the Fidelity Wise Origin Bitcoin Fund (FBTC), which experienced outflows of $74.6 million, and Grayscale Bitcoin Trust (GBTC), with $44.6 million in net outflows.
Conclusion
As both XRP and BTC navigate complex legal, macroeconomic, and geopolitical challenges, the coming weeks will be crucial in determining their price paths. With both markets under pressure, investors must remain vigilant, balancing the potential for legal clarity and ETF approvals against the backdrop of global uncertainty.
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