Analyst: Here’s How Quantitative Easing Will Send XRP Parabolic

Crypto analyst STEPHISCRYPTO has presented an analysis suggesting that another round of Quantitative Easing (QE) by the U.S. Federal Reserve could trigger a significant rally in XRP. His chart compared the Federal Reserve’s total assets (WALCL) with XRP’s weekly performance, highlighting how previous Fed balance sheet expansions aligned with XRP’s bullish momentum.

The analyst highlighted two distinct periods: QE 2020, which coincided with the surge in market liquidity following the pandemic, and a projected QE 2025, where he anticipates a similar liquidity event. The chart shows XRP maintaining a stable position before each liquidity expansion, followed by notable upward movement. This visual connection formed the basis of his projection that renewed monetary easing in 2025 could once again lift XRP’s market valuation.

Contextualizing Quantitative Easing’s Market Impact

Quantitative Easing is a monetary policy tool used by the Federal Reserve to inject liquidity into the economy, typically through large-scale asset purchases. These policies are designed to lower interest rates and support financial markets during periods of tightening or slowdown. Historically, QE has influenced various asset classes by increasing the money supply and investor risk appetite.

In 2020, QE contributed to a rapid recovery in financial markets following the economic disruption of COVID-19. During this same period, XRP’s chart reflected a strong rally, aligning with the broader liquidity-driven rally seen across cryptocurrencies. STEPHISCRYPTO’s projection rests on this historical precedent, suggesting that a similar policy move could again benefit digital assets such as XRP.

Community Perspective and Debate

While STEPHISCRYPTO’s chart points toward a strong correlation between QE and XRP’s performance, not all observers share the same outlook. An X user, SJPR Crypto, commented that the 2020 QE response was unique, driven by extraordinary global circumstances, and that a future intervention may not mirror the same scale or market effect. This perspective underscores the uncertainty about how future monetary easing could influence cryptocurrency markets, particularly if economic conditions differ substantially from the 2020 environment.

XRP’s Outlook

The analysis implies that XRP’s long-term trajectory may remain sensitive to macroeconomic trends and central bank policy decisions. Should QE 2025 materialize as projected, liquidity inflows could act as a catalyst for renewed upward pressure on digital assets. However, the extent of such an impact would depend on the scale of intervention, regulatory developments, and overall investor sentiment across the cryptocurrency market.