XRP and BTC Grapple with Regulatory Uncertainty: SEC vs. Ripple Case and Biden's Crypto Tax Rule in Focus

The crypto market is grappling with heightened volatility following Biden's new crypto tax rule. Key players like XRP and BTC are under pressure as regulatory uncertainty continues to dominate headlines.

Amidst heightened market volatility, key cryptocurrencies like XRP and BTC are facing the heat as regulatory uncertainty continues to dominate headlines. This article delves into the latest XRP and BTC trends, highlighting the impact of Biden's crypto tax rule, the SEC vs. Ripple case, and the broader market dynamics.

Biden's New Crypto Tax Rule: A Contentious Move

On December 27, the Biden administration finalized a crypto broker tax reporting rule that has sparked legal and Congressional challenges. This rule mandates trading platforms to track and report user activities for all digital asset sales by 2027, a move that has raised concerns over its impact on the crypto industry.

The SEC vs. Ripple: High Stakes for XRP's Future

The SEC's appeal in the case against Ripple is nearing a critical deadline, with the agency's legal maneuvers set to potentially reshape XRP's regulatory classification. If the SEC successfully overturns previous rulings, XRP may face delistings from major exchanges due to its status as a security.

On the other hand, should the Biden administration withdraw the SEC's appeal, XRP could be propelled closer to its 2018 all-time high of $3.55, as the pro-crypto administration may favor a more lenient approach toward the token.

XRP Price Trends and Outlook

As of December 27, XRP closed at $2.1446, down 0.42% amid broader market sell-offs. Throughout 2024, the token has faced pressure due to regulatory uncertainty.

XRP's future trends will hinge largely on the SEC's upcoming decisions and the broader market sentiment. A successful SEC appeal could drive XRP below $1.50, while a withdrawal might push prices higher.

Bitcoin Feels the Pinch: ETF Outflows and Regulatory Moves

Bitcoin (BTC) slipped below the $95k mark on December 27 due to ETF outflows and Biden's tax policy. Additionally, spot ETF market volatility and concerns over upcoming Fed rate decisions have further dampened BTC's price movements.

Despite these challenges, corporate adoption of BTC remains a bright spot, with new ETFs like the Bitcoin Standard Corporations ETF highlighting the growing role of BTC in corporate treasury reserves.

BTC Price Trends and Long-Term Potential

BTC's near-term price trends are closely tied to ETF activity and the US government's crypto strategies. In the event of sustained ETF outflows, BTC may slide toward the $90,742 support level.

However, if ETF inflows and corporate strategic reserves adopt BTC, the cryptocurrency might push back toward the $100k resistance zone.

Over the long term, the increasing use of BTC as a corporate reserve asset could stabilize demand despite short-term volatility, potentially driving the cryptocurrency toward higher price points.

As 2024 concludes, XRP and BTC stand at pivotal moments in their respective journeys. Regulatory developments, including the SEC's Ripple case and ETF market activity, will continue to shape their trajectories. For investors, staying up-to-date on these critical updates is essential for navigating the volatile crypto market landscape.