XRP News Today: Ripple Legal Risks Mount, Price Dips Below $2.20; BTC Slides to $104k

XRP Extends Losing Streak as Legal Uncertainties Intensify

Court filings fueled uncertainty in the SEC v. Ripple case, sending XRP to its lowest level since May 8. Pro-crypto lawyer Bill Morgan shared a court filing by an interested party relating to the Ripple case, stating he holds ‘data and information believed to be decisive evidence to settle controlling questions and matters central to 10 years of nightmarish chaos thrown upon all of us unsuspecting Americans.’

The XRP community and crypto investors had anticipated the SEC to submit a revised request for an indicative ruling on lifting the injunction prohibiting XRP sales to institutional investors and reducing the $125 million penalty.

Bill Morgan remarked:

“I was expecting some filing in the SEC v Ripple case given what happened to the last motion that was dismissed two weeks ago, especially given that the 60 day period which the parties have before the SEC is required to file a status report with the court of appeals expires on 16 June.”

On May 15, Judge Analisa Torres rejected the SEC’s request for an indicative ruling, citing procedural errors and a failure to convincingly argue the settlement terms serve the public and institutional investors.

Bill Morgan referred to the court deadline for the SEC to submit a status report on progress toward a settlement. On April 16, the US Court of Appeals granted a joint motion to hold the appeal in abeyance (on hold) for 60 days. The filing came after Ripple’s Chief Legal Officer, Stuart Alderoty, declared the SEC had agreed to drop its appeal without conditions and that Ripple would withdraw its cross-appeal.

Hopes of a resolution to the Ripple case sent XRP to a May 12 high of $2.6553. However, the May 15 court ruling sent XRP crashing below $2.2.

SEC Appeal Withdrawal Crucial for XRP-Spot ETF Approvals

A settlement could prove pivotal in resolving the case. Ripple may proceed with its cross-appeal if the courts deny lifting the injunction and lowering the penalty. If Ripple proceeds, the SEC may pursue its appeal against the Programmatic Sales of XRP ruling.

Judge Torres previously ruled that such sales did not meet the third prong of the Howey Test.

On Thursday, May 29, the SEC held its final closed meeting for 2025, according to the SEC’s Meeting and Events page. The lack of communication regarding the Ripple case could add to the legal uncertainties, potentially sending XRP below $2.

Significantly, the SEC may disapprove XRP-spot ETF applications if it pursues the appeal.

XRP Price Outlook: Legal Risks in Focus

XRP fell 1.32% on Thursday, May 29, following Wednesday’s 1.85% loss, closing at $2.2445. The token outperformed the broader market, which slid 2.58% to a crypto market cap of $3.29 billion. However, on Friday, May 30, XRP remained under pressure, dropping to $2.1337 but steadied.

XRP’s near-term price trend hinges on legal rulings and spot ETF developments.

A move above $2.50 would target $2.6553. A sustained break above $3 would bring the record high of $3.5505 into view.

For a deeper dive, see our full XRP forecast here.

US Appeals Court Decision Sinks BTC

While legal uncertainties pressured XRP, US trade developments impacted bitcoin (BTC) demand on May 29. The US Court of Appeals reinstated President Trump’s Liberation Day tariffs, impacting risk assets. Significantly, the court ruling reignited concerns about the US-China trade war, which could potentially fuel US inflationary pressures and derail the global economy.

US economic data, on May 29, showed potential cracks in the economy. Initial jobless claims jumped from 226k (week ending May 17) to 240k (week ending May 24). Rising unemployment may weaken wage growth and consumer spending, which contributes over 60% to US GDP.

The labor market data coincided with US corporate profit figures for Q1, which added to the gloom. Corporate profits slid 3.6% quarter-on-quarter after rising 5.9% in Q4 2024.

BTC slid from $108,924 to a low of $104,726 in response to the data and the trade headlines.

US BTC-Spot ETF Market Sees Outflow Surge

On Thursday, May 29, the US BTC-spot ETF market saw a sharp increase in net outflows, sending bearish signals. According to Farside Investors, key flows included:

• Fidelity Wise Origin Bitcoin Fund (FBTC) saw net outflows of $166.3 million.
• Grayscale Bitcoin Trust (GBTC) had net outflows of $107.5 million.
• ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB) reported combined net outflows of $160 million.

Excluding BlackRock’s (BLK) pending iShares Bitcoin Trust (IBIT) flows, the US BTC-spot ETF market saw total outflows of $471.8 million, potentially ending the ten-day inflow streak.

BTC Price Outlook: The Fed, Legislation, and ETF Trends

BTC slid 2.01% on May 29, adding to Wednesday’s 1.03% loss, closing at $105,662.

The near-term outlook hinges on US economic data, Fed policy signals, legislative-related updates, trade developments, and ETF inflows. On Friday, May 30, the US Personal Income and Outlays Report will reflect key inflation trends and whether tariffs have pushed prices higher. Higher prices and weaker labor market conditions raise stagflation risk.

Potential scenarios:

• Bearish Scenario: Rising trade tensions, hotter US inflation, legislation roadblocks, hawkish Fed rhetoric, and ETF outflows could drag BTC below $100,000.
• Bullish Scenario: Easing trade friction, bipartisan support for crypto bills, a dovish Fed stance, softer US inflation, and ETF inflows could drive BTC toward the record high of $111,917.

Key legislation includes the Market Structure Bill and the Bitcoin Act. The Market Structure Bill’s progress could decide the fate of the Bitcoin Act. The Bitcoin Act proposes that the US government acquire one million BTC over five years, with a mandatory 20-year holding period.

What to Watch

Investors should closely monitor developments in the SEC vs. Ripple case, crypto-related legislative headlines, US inflation data, and Fed signals. These will likely dictate broader market sentiment and determine whether XRP and BTC can revisit recent highs.

Explore analyst forecasts on where XRP and BTC may head next amid legal and political tailwinds.