Ripple’s Q4 2024 XRP Markets Report has unveiled major developments in the crypto space, highlighting XRP’s price movement, institutional interest in ETFs, and key regulatory changes. With the SEC potentially withdrawing its appeal and banks gaining regulatory clarity on crypto custody, the crypto market is on the brink of significant transformation.
XRP’s 280% Surge Amid Regulatory Optimism
XRP saw an impressive 280% rally in late 2024, fueled by growing optimism about the SEC withdrawing its appeal against Ripple’s legal victory. This surge was further supported by Donald Trump’s nomination of former SEC Commissioner Paul Atkins as the next SEC Chair, a move widely expected to lead to a pro-crypto policy shift.
However, XRP has since pulled back from its December high of $3.3999, as investors await confirmation on whether the SEC will formally drop its appeal. The delay in decision-making, possibly until Atkins officially takes office, has left the market in a state of cautious anticipation.
Regulatory Shakeup: Crypto Banking Access Restored
A major win for the industry came as the SEC officially rescinded Staff Accounting Bulletin (SAB) 121, a rule that previously made it too costly for banks to offer crypto custody services. By removing this restriction, banks can now provide crypto-related financial services, making digital assets more accessible to institutions and mainstream investors.
Additionally, President Trump signed new executive orders (EOs) aimed at fostering innovation in the U.S. digital asset space, signaling a broader shift toward pro-crypto regulations.
Institutional Investors Push for XRP Spot ETFs
One of the biggest highlights of Ripple’s Q4 report was the surge in institutional interest in XRP ETFs. Five major issuers have already filed for XRP spot ETFs, including:
Bitwise Canary Capital WisdomTree 21Shares Grayscale (which filed to convert its XRP Trust into an ETF on Jan 30, 2025)
If the SEC approves these ETF applications, it could significantly increase demand for XRP, driving prices to new highs.
XRP Price Outlook: What’s Next?
As of January 31, XRP closed at $3.0359, down 2.93% for the day. Despite underperforming the broader crypto market, XRP has managed to hold above the critical $3.00 level.
The biggest price catalyst remains the SEC’s decision on its appeal:
If the SEC withdraws its appeal, XRP could break past its all-time high of $3.55 and rally further. If the SEC pursues the appeal, XRP might dip below $2.50 as uncertainty weighs on investor sentiment.
Bitcoin Faces Pressure as U.S. Tariff Concerns Grow
While XRP awaits regulatory clarity, Bitcoin saw a price dip on January 31, falling from $106,105 to a low of $101,580. The sell-off was triggered by news of the U.S. government imposing 10% tariffs on Chinese goods, which raised concerns about inflation and potential delays in Fed rate cuts.
Despite the price drop, U.S. Bitcoin spot ETFs continued to see strong inflows, with $588.1 million in net inflows on January 30. However, January 31 saw a slight pullback with $45.2 million in outflows, particularly from the Bitwise Bitcoin ETF (BITB), which recorded a $56M net withdrawal.
Market Watch: Will a U.S. Bitcoin Reserve Fuel the Next Rally?
A potential U.S. Strategic Bitcoin Reserve (SBR) is also making headlines. If approved, such a move could tighten Bitcoin’s supply and drive institutional adoption, setting the stage for a massive rally.
Meanwhile, upcoming U.S. jobs data and Fed policy decisions will play a key role in Bitcoin’s next move.
A weaker labor market could boost rate-cut expectations, pushing BTC toward $109,312. A strong labor market could delay rate cuts, dragging BTC toward $95,000.
Final Thoughts: A Pivotal Moment for Crypto Markets
Ripple’s Q4 report reinforces the fact that crypto markets are at a turning point. With XRP ETF applications piling up, SEC decisions looming, and institutional Bitcoin adoption growing, the next few months could define the future of digital assets.
Will XRP break its all-time high, or will regulatory delays hold it back? Will Bitcoin regain momentum, or are macroeconomic concerns too strong? The answers lie in the weeks ahead—stay tuned for the next big move in crypto!
