German finance executive Oliver Michel, CEO of Tokentus Investment AG, has commented on the long-awaited XRP price breakout.
He said XRP’s price action depends less on news headlines and more on global liquidity shifts. In particular, he cited the end of Quantitative Tightening (QT) and the return of Quantitative Easing (QE) as a major factor.
Liquidity, Not News, Drives XRP’s Future
Speaking on DER AKTIONÄR TV, Michel noted that XRP has seen waves of positive developments, including Ripple’s Swell conference announcements. Yet, the price continues to lag in performance.
He explained that this disconnect stems from the broader financial cycle, not a lack of adoption or momentum. According to Michel, cryptocurrency prices, including XRP, heavily rely on global liquidity trends.
“News is great,” he said, “but the aid packages and liquidity injections are what will bring the market to life and deliver the final boost to the top.”
His remark stresses that it’s not just news, but the flow of liquidity that will move the market. Once central banks resume QE, effectively injecting money back into the markets, XRP could “finally explode.”
Role of Central Banks and Interest Rates
In other words, Michel emphasized that the Federal Reserve and other central banks will play a crucial role in setting the stage for the next bull market cycle. He expects that interest rate cuts, once they begin in earnest, will unleash the liquidity needed to fuel crypto rallies.
“It may be necessary to cut rates more sharply than Jerome Powell is currently willing to admit,” Michel said. He added that various economic aid packages and looser monetary policies would “form the basis for fueling the markets.”
It’s A Question of Timing and Patience
While optimistic about XRP’s eventual surge, Michel cautioned that investors need patience as the financial and crypto markets are anticipating real-world policy shifts months in advance.
“If measures are taken that might not take effect for another six or nine months, the stock market, and that includes cryptocurrencies, will react accordingly, potentially within the next five to eight weeks,” he said.
“I Hope to Wake up XRP to Trading at $8”
Michel concluded by reminding investors to adopt a more extended time horizon and resist the urge to monitor hourly price changes. “Being realistic means looking at it week by week, not letting yourself get flustered,” he noted.
He humorously added that he sometimes hopes to wake up and find XRP trading at $4, $5, or $8 overnight. But the journey to these price levels requires patience.
Essentially, XRP’s explosive move may not come from any single news event but from a turning point in global monetary policy. Once central banks pivot toward easing and inject liquidity back into the system, XRP, along with the broader crypto market, will respond accordingly.
It’s worth noting, however, that some industry observers, including Morgan Stanley, have argued that the Fed’s plan to end quantitative tightening in December may not necessarily signal a full return to quantitative easing.
In other words, the timing of XRP’s breakout may depend not just on policy announcements, but on the actual flow of liquidity into global markets.