Crypto analyst Ripple Bull Winkle has released a new video outlining why a $42 price level for XRP should not be dismissed as speculation.
In a recent post, the analyst stated that banks have already completed their internal calculations and are positioning accordingly, adding that the numbers behind the thesis are significant.
The accompanying video expands on this claim by linking liquidity conditions, regulation, custody structures, and institutional investment mechanisms to a long-term valuation case for XRP.
🚨 Just dropped: Why $42 $XRP isn't hopium
Banks already did the math. The numbers are wild.
Full breakdown 👇https://t.co/skh60s1FWA pic.twitter.com/qBRLDHid4q
— Ripple Bull Winkle | Crypto Researcher 🚀🚨 (@RipBullWinkle) January 24, 2026
Liquidity Conditions and Central Bank Signals
In the video, Ripple Bull Winkle points to recent remarks from U.S. Federal Reserve Chair Jerome Powell as a key signal for future liquidity conditions.
Powell noted that while the Federal Reserve’s balance sheet size is currently frozen, reserves will be added back at a certain point to keep pace with the growth of the banking system and the broader economy.
According to the analyst, this language indicates an eventual balance sheet expansion, which historically increases leverage capacity and risk tolerance across financial institutions.
Ripple Bull Winkle argues that markets tend to anticipate these shifts rather than wait for explicit policy announcements. He states that previous periods of expansion in the digital asset market have coincided with excess liquidity.
However, he emphasizes that the next phase may differ in terms of which assets benefit. In his view, capital is more likely to flow through regulated and institutionally approved channels rather than speculative segments of the market.
Regulation and Institutional Compatibility
A central part of the analyst’s argument focuses on regulatory alignment, particularly developments in Japan. Ripple Bull Winkle notes that Japan is moving toward classifying XRP as a financial product under the Financial Instruments and Exchange Act, with a target timeline around the second quarter of 2026.
He explains that such a classification would allow institutions to hold, structure, and distribute XRP in ways that are not permitted for unclassified crypto assets, shifting it from speculative exposure to balance-sheet-compatible holdings.
He further highlights wallet concentration data, stating that the largest XRP wallets are primarily associated with exchanges and institutional custody providers rather than anonymous holders. According to the analyst, this concentration supports a market structure where liquidity is managed professionally, with price movements occurring when sustained demand exceeds available supply rather than through short-term volatility.
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ETFs, Market Structure, and Price Projections
Ripple Bull Winkle also addresses technical structure and passive investment flows. Referencing chart analysis from EGRAG Crypto, he notes that prior macro formations in XRP’s price history have respected measured moves, with a projected range between $40 and $42 cited as structurally justified rather than guaranteed.
He stresses that structure alone is insufficient without consistent demand, which he believes is increasingly coming from exchange-traded funds.
The analyst points to existing and upcoming crypto ETFs, including index products with XRP allocations, arguing that regular rebalancing gradually removes supply from the market. He contrasts this with sudden price spikes driven by single large buyers, stating that steady institutional accumulation can lead to significant repricing over time.
In his conclusion, Ripple Bull Winkle maintains that the $42 target is rooted in liquidity trends, regulatory progress, custody infrastructure, and passive demand mechanisms, rather than short-term optimism.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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