Expert Analysis: How Will the SEC’s Next Move Shape XRP’s Future?

While investors speculate about the SEC withdrawing its appeal, bitcoin (BTC) continued to trend lower. Optimism about a demand boost waned as investors

Bitcoin (BTC) continued lower on Wednesday, with optimism about a demand boost waning as investors digested US crypto Czar David Sacks' recent press conference.

After a 3.54% loss on Tuesday, BTC declined by 1.34% on Wednesday, closing at $96,668. Notably, BTC fell short of the $100K level for the first time since January 17.

Fresh from his appointment as AI and Crypto Czar, Sacks stated that the Presidential Working Group on Digital Assets will consider a Bitcoin reserve. However, he downplayed expectations of an immediate move to make BTC a strategic reserve asset.

Speculation that BTC could become a US Strategic Bitcoin Reserve (SBR) drove prices to a record high of $109,312 on January 20. Earlier in the month, Anthony Scaramucci suggested that the US government could make a substantial BTC acquisition, adding that Trump, Tim Scott, and Gary Gensler "want it to happen."

To establish BTC as a strategic reserve asset, approval is needed from Congress, the Federal Reserve, the Treasury Department, and the President himself. In late 2024, Senator Cynthia Lummis initiated the effort by introducing the Bitcoin Act, which proposes that the US government purchase 1 million BTC over five years, to be held for 20 years.

Inflows into US BTC-spot ETFs also slowed on Wednesday as BTC price momentum waned. According to data from Farside Investors, ETF inflows on February 5 were as follows:

Excluding BlackRock's (BLK) iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market recorded a total net inflow of $22.0 million on Wednesday. These modest inflows may cushion any initial downside on February 6, although Wednesday's subdued figures could also keep BTC below the $100K level.