XRP Volatility to Persist Until It Decouples from Speculative Bitcoin Flows
XRP volatility remains high as long as the token is traded alongside debt-based speculative assets like Bitcoin. Versan Aljarrah, founder of Black Swan Capitalist, argues that XRP’s price swings mirror bitcoin-style flows because traders treat it as part of a “debt-based speculative complex.” To break this correlation, XRP must be valued for its real-world utility in cross-border settlement and liquidity. Institutional use cases—such as tokenized debt, large-scale settlement corridors, and enterprise-grade custody—are essential to shift demand from trading to transaction needs. Regulatory clarity and mature settlement infrastructure are also critical. Until XRP becomes a connective bridge for institutional capital, speculators will drive its price, keeping volatility entrenched. Long term, if XRP achieves widespread adoption as a settlement asset, its correlation with Bitcoin could fade, ushering in a stable phase driven by transaction demand rather than market sentiment.
Neutral
This analysis is neutral because the article highlights structural challenges rather than immediate catalysts for price direction. While it underscores XRP’s long-term potential as an institutional settlement asset—suggesting a bullish outlook if adoption occurs—it also cautions that ongoing speculative trading will sustain volatility in the near term. Similar past events, such as Ethereum’s decoupling attempts when transitioning to proof-of-stake, show that adoption-driven stability takes time. Traders should expect continued price swings until regulatory clarity, custody solutions, and institutional corridors mature, but monitor developments for a possible shift to stability.