A quiet but powerful shift is unfolding beneath the surface of global financial markets — one that could trigger the next major crypto rally. Analysts say liquidity is returning to the system after two years of relentless tightening, and some believe this new wave of capital could set the stage for XRP’s long-awaited comeback.
Among them is Levi Rietveld of Crypto Crusaders, who argues that changing liquidity dynamics within the U.S. financial system signal a critical turning point for digital assets.
Liquidity Flows Back into the System
At the heart of Rietveld’s analysis is the Federal Reserve’s Overnight Reverse Repurchase Facility (RRP), a mechanism that temporarily removes liquidity from circulation. For the first time since April 2021, demand for this facility has plunged to $4.1 billion, marking a historic decline from its December 2022 peak of over $2.5 trillion.
“The demand for the Federal Reserve’s RRP facility has fallen to $4.1 billion, which is the lowest since April of 2021,” Rietveld said in his recent post on X. “It’s one of the key excess liquidity metrics that tells us money is re-entering the economy.”
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— Levi | Crypto Crusaders (@LeviRietveld) October 19, 2025
This decline indicates that fewer institutions are parking cash with the Fed, allowing funds to circulate more freely in capital markets. Historically, high RRP balances have aligned with risk aversion and market corrections. When those balances fall, liquidity tends to flow back into equities and crypto, creating a friendlier environment for speculative and high-utility assets like XRP.
Why This Matters for XRP
For XRP, liquidity is more than just a macro backdrop; it’s the lifeblood of its ecosystem. Designed to facilitate rapid, low-cost cross-border payments, the token’s value proposition depends on how efficiently liquidity can move across networks.
As Rietveld explains, “Once liquidity started falling off a cliff in 2022, everything corrected, Bitcoin hit lows, and XRP followed. Now we’re seeing the reverse.”
In his view, the same mechanism that dragged XRP and other digital assets down is now swinging in the opposite direction. If liquidity injections accelerate, especially through global rate cuts and fiscal expansion, XRP could be among the first beneficiaries. “The U.S. economy is about to inject trillions into the worldwide economy,” Rietveld noted. “This has massive positive ramifications for XRP.”
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The Role of Policy and Rate Cuts
The macro context reinforces Rietveld’s optimism. With inflation easing and growth slowing, traders are betting on larger-than-expected Federal Reserve rate cuts over the next few quarters. That would reduce yields on cash instruments and push investors back toward riskier, growth-linked assets. Historically, crypto markets have reacted positively to such shifts in monetary policy.
As global liquidity returns, institutions may resume deploying capital into tokenization projects, stablecoin settlements, and cross-border payment infrastructure — sectors in which XRP already plays a strategic role. A broader wave of monetary easing could therefore amplify XRP’s relevance within the evolving digital payments landscape.
The Road Ahead
Of course, no comeback happens overnight. Regulatory scrutiny, macro shocks, or delayed policy pivots could still restrain momentum. Yet Rietveld argues that the foundational conditions for recovery, liquidity, rates, and sentiment are finally converging.
“People underestimate how much macro liquidity drives these markets,” he emphasized. “The charts don’t lie, the comeback starts now.”
If the Fed’s shift toward easier policy continues, and liquidity truly floods back into global markets, XRP may indeed be poised for its strongest recovery phase in years, marking what could be the beginning of the long-anticipated XRP comeback story.
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 urged to do in-depth 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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