The decline of XRP is related to the alleged accumulation of Bitcoin.

Janak9955

In the ongoing discussions surrounding XRP's underperformance, a prominent cryptocurrency investigator known as "XRP Mr. Huber" has resurfaced. Huber sparked renewed allegations about Ripple regularly converting XRP to Bitcoin, especially during periods of significant BTC market surges.

As Huber drew attention to the difference in XRP's supply growth compared to other prominent cryptocurrencies like Bitcoin, Ethereum, Cardano, and Solana, all of which have experienced considerable spikes during the current bull market cycle, the discussion ensued.

In response to Huber's revelations, user Franco Cappello shared a chart depicting XRP's declining performance relative to Bitcoin since January 2023. Noticing the long-term downward trend of XRP against BTC, Cappello suggested that Ripple may have been accumulating Bitcoin during this time.

He suggested that Ripple's accumulation of Bitcoin might be contributing to XRP's underperformance relative to mainstream cryptocurrencies. Thus, he stated, "Ripple says they let XRP 'breathe' in XRP/USD terms, but I suggest they let XRP 'breathe' in XRP/BTC terms."

When asked for specific evidence to support this claim, Cappello responded that it was "common sense." He believed that Ripple's strategic decision to convert XRP into Bitcoin was logical, especially considering Bitcoin's market impact following the ETF approval.

Investigator Huber, esteemed within the XRP community, supported Cappello's assertion. He emphasized that it could be reasonably inferred that Ripple exchanged XRP for Bitcoin. He pointed out Ripple's position in the liquidity business, necessitating holdings in various cryptocurrencies, with XRP being the most liquid asset.

According to this viewpoint, Huber emphasized Ripple's need to convert XRP into other cryptocurrencies to meet the fundamental requirements of its on-demand liquidity service (now known as RippleNet).

Additionally, Huber claimed that whenever Ripple's XRP liquidity significantly decreased, the company would repurchase XRP by selling other assets. He explained that this was aimed at providing price momentum for XRP.

Furthermore, he alleged that Ripple typically followed this cyclical pattern, repeating the process as needed. However, the cryptocurrency sleuth admitted that these claims were speculative and conspiratorial.

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