Global Liquidity Shock: The Day XRP Breaks Free From Bitcoin Is Coming, Here’s When it Begins

XRP's Potential Decoupling from Bitcoin

The cryptocurrency market has long been dominated by Bitcoin, significantly controlling token movements, but there are growing indications that this may soon change. Stern Drew, a popular crypto pundit, has predicted that XRP would soon break away from the clutches of Bitcoin and that the signs are already showing.

In a recent thread on X, he argued that a global utility shock is imminent, and Bitcoin will lead the market in the downfall, but XRP would be immune. According to him, the Bitcoin-XRP decoupling would begin when utility volume dwarfs speculative volume. This shift, he explained, could be triggered by several key factors, leading to a new era in global financial systems.

Drew identifies a series of signs to watch for the decoupling event: Bitcoin crashes, while XRP holds steady or rises; liquidity on XRP-led corridors spikes; tokenized asset volume surpasses speculative altcoin flows; and banks accelerate their blockchain settlement pilots.

When this happens, Drew argues that the market narrative would shift from “Crypto moves with Bitcoin” to “utility assets follow their own fundamentals,” and this, he said, is happening faster than people realize.

XRP’s Role in the Decoupling Event

Drew further explains that for XRP to take the lead, it will need a crucial infrastructure layer that goes beyond simple cryptocurrency transactions. This is where the DNA protocol within the XRP Ledger becomes important.

The protocol combines a permissioned decentralized exchange (DEX) with zero-knowledge credential systems, making XRP more appealing for institutions that require secure and private interactions. This combination of scalability and privacy could position XRP as the primary liquidity rail for institutional finance.

Drew envisions a scenario where the global financial system breaks down due to rising bond yields, global liquidity shortages, Japan repatriating capital, and the rise of new Central Bank Digital Currency (CBDC) corridors. These events would create the perfect storm for XRP to emerge as the settlement solution for institutions, bypassing Bitcoin’s speculative nature.

Regulatory Clarity and Institutional Adoption

To support this, Pumpius, another vocal crypto commentator, highlights several additional factors that could drive XRP’s decoupling from Bitcoin. He points to Japan’s fragile economy, which could accelerate XRP-based settlement adoption.

He also notes the potential impact of regulatory clarity through the Clarity Act, which could separate commodities from settlement tokens like XRP. Additionally, the integration of ISO20022, which is reportedly pushing banks toward utility-driven assets, would further solidify XRP’s position as a functional currency, according to him.

Pumpius also points to the growing pressures from fragile global economies and the potential collapse of artificial pricing systems like MSTR and USDT, which he claims have traditionally inflated altcoin values.

He argued that the potential launch of a BlackRock XRP ETF and the increasing use of XRP in repos could also increase institutional confidence in XRP. Lastly, advancements in zero-knowledge privacy and credential systems could make XRP an even more attractive option for secure institutional settlements.