Financial markets often treat novel assets like familiar ones, subjecting them to the same waves and downstream shocks. In the case of XRP, volatility remains rooted in its positioning alongside debt-based speculative assets rather than as a standalone infrastructure asset.
According to Versan Aljarrah, founder of Black Swan Capitalist, as long as XRP remains entangled with the speculative flows of Bitcoin and other risk-on instruments, its price fluctuations will persist.
Correlation with Speculative Assets
Aljarrah emphasizes that XRP’s current price dynamics mirror bitcoin-style flows. In his view, the token is still being traded as part of the “debt-based speculative complex.” As long as traders treat XRP the same way they treat Bitcoin—jumping in with leveraged bets and risk-on positioning—the asset remains hostage to market sentiment and macro shocks.
XRP will remain volatile as long as it’s correlated with debt based speculative assets like Bitcoin.
However, there will come a time when XRP decouples from these markets and establishes itself as an independent standard that absorbs and consolidates the global financial system. pic.twitter.com/6rcOeY3B3l
— Black Swan Capitalist (@VersanAljarrah) November 11, 2025
For XRP to shed its speculative tether, it needs to be priced by real economic utility rather than trading hype. Aljarrah points to the token’s potential as a settlement and liquidity asset embedded in global finance. But until it is widely adopted in that role, speculators will dominate flows and amplify volatility.
The Path to Decoupling
According to Aljarrah, decoupling occurs when XRP shifts from being a traded token to a connective bridge for capital across institutions. This means large-scale use in cross-border settlement, tokenized debt, and value-flows outside of speculative arenas.
Once the token is governed by transaction demand rather than trading demand, correlation to Bitcoin could fade.
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Implications for Global Finance
In Aljarrah’s scenario, XRP evolves into an independent standard—absorbing, condensing, and redirecting liquidity from the global financial system. He argues that the token’s real impact lies in enabling institutions to re-route trillions in value more efficiently. If achieved, XRP’s role would be transformative, rather than merely speculative.
The Remaining Risk Factors
Several structural hurdles remain before this evolution can reduce volatility. Regulatory clarity, institution-grade custody, sufficient settlement corridors, and tokenized asset pipelines must all mature. Until then, XRP’s fate remains linked to broader crypto sentiment and speculative cycles—the very forces Aljarrah warns about.
In sum, Aljarrah’s framework reframes volatility not as a feature of tokenomics alone but as a signal of market context. As long as XRP is treated like any speculative debt-fueled asset, volatility will endure.
The moment it is treated like a financial infrastructure asset is the moment correlation breaks. For now, volatility is the price tag of the market’s unresolved relationship with the token.
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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