While speculative targets exist, $20 is realistic if Bitcoin dominates and XRP adoption continues.
Due to the rising popularity and influx of capital into Bitcoin and ETF products, many prominent individuals, including Michael Saylor, Eric Trump, Robert Kiyosaki, and others, have set a $1M price target for this token by the end of 2023. If Bitcoin price reaches $1 million during this bull run, what would its impact be on XRP price? How high will this token go?
XRP Price Impact if Bitcoin Hits $1M
Before we dive into the calculations and impact of $1M per BTC impact on the XRP token, let’s take a look at a few Bitcoin price predictions.
Many experts and investors have often regarded Bitcoin as the tide that lifts all boats. Here, the anomaly compares boats to altcoins, saying that if BTC climbs, altcoins will follow suit. With this analogy, if the Bitcoin price were to hit $1 million in this bull run, it would mean BTC would need to increase by 9.34 times from its current position of $107K. This move would increase BTC’s market capitalization of $2.13 trillion, according to CoinGecko data, to $19.89 trillion.
For simplicity’s sake, let’s assume a 10x increase in BTC price, while the market cap increases from $2 trillion to $20 trillion. Assuming the ratio of the market cap of XRP and BTC remains the same at 6%, the forecasted price of XRP would be $20.32, or roughly $20. This calculation also assumes that the circulating supply of XRP remains constant at 59 billion.
XRP would need to grow nearly 10x from its current price of $2.17 to reach the forecasted target of $20.
Is XRP at $20 feasible?
Ripple co-founder Arthur Britto, who is also one of the chief architects of the XRP Ledger, stated in one of his old posts that 1 XRP could be worth $10,000. Although the co-founder recently broke his 14-year silence and his identity remains unknown, many in the community believe that this target is achievable.
Ripple’s use of XRP in its products, coupled with its numerous partnerships with the US banking system, suggests that this target is achievable. For example, CoinGape recently announced a potential partnership with Hidden Road that could enable the XRPL to handle $11 trillion in daily volume. In this article, we predict that this target is indeed feasible through the adoption and usage of XRP.
Additionally, SBI Holdings, one of Japan’s biggest banks is also in ties with Ripple. SBI recently transferred $703 million XRP ahead of 1B escrow unlock. The Japanese bank has been vocal about using XRP in Ripple’s On-Demand Liquidity product. Partnerships like these are needed to drive the price of XRP higher.
Moreover, Donald Trump’s crypto startegic reserve has mentioned a potential inclusion of XRP along with Bitcoin. Such an adoption would pump the token’s price at an unprecedented rate.
If the long-standing SEC vs. Ripple lawsuit were to be dropped, it could serve as a tailwind that could push XRP past the $3.40 all-time high. Some outlandish predictions suggest that it could also propel the token to double-digits.
While news-related price movements may be fleeting, an adoption-driven rally could easily propel XRP to $20, especially if Bitcoin reaches $1 million.
