XRP News Today: Ripple’s Legal Battle Enters Critical Phase; BTC Hits $97K

Explore our expert analysis here on the SEC’s next move and its implications for XRP’s future.

Bitcoin’s Rally Amid Trump Transition

Meanwhile, bitcoin (BTC) continued to recover from Monday’s brief dip below $90k. Market anticipation of crypto-friendly orders on Trump’s first day in office drove BTC demand. Expectations include a repeal of the SEC’s SAB 121 regulation.

Staff Accounting Bulletin 121 (SAB 121) is an SEC requirement for companies, including banks, to hold crypto assets on their balance sheets even if they hold the cryptos in customer custody. President Joe Biden vetoed a bipartisan vote against the regulation. The regulation makes it expensive for banks to hold crypto in custody for customers, limiting crypto services and BTC demand.

Trump could also boost expectations for a US strategic bitcoin reserve (SBR), tipping the balance of supply and demand further in BTC’s favor. The Trump administration will need Congress, the Federal Reserve, the US Treasury Department to approve BTC as a strategic reserve asset.

In a recent interview, Anthony Scaramucci said that Senate Banking Committee Chairman Tim Scott and US Treasury Secretary Scott Bessent want that to happen. That could leave US Federal Reserve Chairman Jerome Powell as the final say on a US SBR.

Bitcoin Price Outlook

On Tuesday, January 14, BTC rose 2.19%, reversing Monday’s loss of 0.10%, to close at $96,566.

BTC price outlook depends on US CPI report, BTC spot ETF market flows and Strategic Bitcoin Reserve (SBR) updates.

Warmer-than-expected US inflation numbers may dampen expectations for a first half (H1) of a 2025 Fed rate cut. A more hawkish Fed rate path could drive BTC spot ETF outflows, potentially impacting BTC demand. Conversely, softer inflation figures could reactivate bets on a Fed rate cut in March, potentially pushing BTC towards its all-time high of $108,231.

However, US SBR-related updates may trump the impact of the Fed rate path on sentiment. While increased support for an SBR could send BTC to new highs, a lack of bipartisan support could drag it below $90K.