Ripple Circle acquisition: Investor focus has lately switched from the continuous SEC vs. Ripple litigation to the larger scale of Ripple’s U.S. expansion initiatives. On May 1, rumours surfaced about Ripple’s revived interest in purchasing USD Coin’s issuer, Circle. Amelie, a crypto enthusiast sometimes nicknamed as Crypto Barbie on X (previously Twitter), posted:
“Ripple has not backed off from its Circle involvement. According to reports, Brad Garlinghouse, CEO of Ripple, has made a bid of $20 billion, indicating that the transaction is probably headed toward completion.”
Circle allegedly turned down Ripple’s first $5 billion offer earlier in the week, therefore highlighting Ripple’s aggressive expansion intentions. Pro-crypto attorney Bill Morgan proposed a potential motivation for Ripple’s offer: Emphasising the strategic reasons for Ripple’s quest, crypto fan Crypto Eri repeated this theory:
“Ripple’s desire to buy Circle goes beyond only the financial considerations. It’s about controlling USDC, dominating the stablecoin market, sidelining smaller rivals, and seizing control of Circle’s payment network, therefore enabling an IPO. That is worth exactly how much? A lot. I sense a second offer around here.”
Ripple’s possible purchase of Circle fits its larger goal of subverting SWIFT’s hegemony in the worldwide payments market, generating possible demand for XRP. Recent hints about the company’s intentions for more than just a cooperation come from Ripple CEO Brad Garlinghouse:
“Although billions of dollars flow across borders, SWIFT, a 50-year-old system still rules. This offers a great chance for modernity.”
XRP Price Outlook: Legal Developments and ETF Applications in the Spotlight
Closing at $2.2127, XRP gained 0.95% on May 1, somewhat recovering from a 2.12% loss the day before. Still, the cryptocurrency lagged behind the broader market, which experienced a 2.06% increase in total crypto market capitalisation to $2.96 trillion. The SEC’s silence on the Ripple issue limits XRP’s ability to achieve a more notable price increase.
Looking ahead, the main elements affecting XRP’s vxrp consist of:
- Progress in Ripple’s case and potential settlement appeals.
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Updates on XRP’s sxrp TF applications.
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Broader macroeconomic factors, such as Federal Reserve policies and US-China trade relations.
XRP technically supports near-term at $2.10. With a possible retest of the all-time high at $3.5505, a breakout over $2.50 would open the path towards $3.00.
Bitcoin Tests $97K as Positive Earnings Boost Market Sentiment
XRP witnessed a little increase, but Bitcoin (BTC) saw a more notable rise, testing the $97,000 level for the first time since February 21. Positive U.S. company profits inspired investor confidence, which helped the Nasdaq Composite Index rise 1.52% and pushed BTC’s price
Notable earnings reports included:
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Microsoft (MSFT) is up 7.63%.
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Meta Platforms (META) is up 4.23%, after surpassing earnings expectations.
Concurrent with lowering global trade tensions, Bitcoin’s sturdiness as a digital substitute for gold drove its value even more. On May 1, gold dropped 1.52%, extending its losing run to three consecutive sessions. Head of Research at CryptoQuant, Julio Moreno, talked about how tariff policies affect inflation and crypto markets:
“Tariff” discussions have no direct impact on pricing. Imports soared before tariffs. Thus, inventories are valued before tariff application. Should Trump not yield, the whole effect will still be seen.
For both inflation and the crypto markets, tariffs remain a wildcard. By increasing import costs and reducing consumer demand, Trump’s policies worry U.S. authorities about causing stagflation. This could compel the Federal Reserve to maintain higher interest rates, affecting risk assets.
Bitcoin ETF Flows Fuel Market Momentum
Revived investor interest in Bitcoin spot ETFS helped support BTC’s price increases. Driven by lower U.S. GDP figures, net outflows of $56.3 million on April 30 caused the market to see a comeback on May 1 with net inflows of $71.1 million into U.S. BTC-spot ETFS.
The notable inflows included:
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Grayscale Bitcoin Mini Trust (BTC): $41.9 million.
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Bitwise Bitcoin ETF (BITB): $38.4 million.
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Fidelity Wise Origin Bitcoin Fund (FBTC): $29.5 million.
ARK 21Shares Bitcoin ETF (ARKB) witnessed net outflows of $87.2 million. This change in ETF flows emphasises the changing investor attitude toward Bitcoin as a counterpoint against economic instability.
Bitcoin Price Outlook: Policy and Legislation in Focus
Bitcoin, closing at $96,453, rose 2.43% on May 1, following a 0.19% drop the day before.
Many elements will influence the future price movement of Bitcoin, including:
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Bearish Scenario: Rising U.S.-China tensions, hawkish Federal Reserve signals, weak U.S. economic data, delays in crypto legislation, and continued ETF outflows could drive BTC below $90,000.
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Bullish Scenario: Improved trade relations, a dovish Federal Reserve, positive macroeconomic data, pro-crypto legislation, and sustained ETF inflows could propel BTC above $100,000.
Among important legislative events is Senator Cynthia Lummis’s Bitcoin Act, which suggests the United States purchase one million Bitcoins over five years. This action might significantly affect the demand for Bitcoin. Arizona has also enacted legislation allowing up to 10% of public monies to be allocated to digital assets like Bitcoin, indicating increasing bipartisan support for cryptocurrencies.
What’s for Ripple and Bitcoin?
Both assets are ready for significant swings in the following weeks, depending on Ripple’s legal case and expansion activities. ETF flows and market attitude drive speculation’s comeback. Closely monitor market trends to stay current on the most recent advancements.
