XRP Price Influenced More by Bitcoin Than Supply Shock

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• Bill Morgan attributes the quantity of XRP on exchanges to Bitcoin movement, not the supply shock theory.
• XRP can make investors wealthy as long as they prioritize smart custody, smart tax planning, and proper wealth structures.

Crypto expert Bill Morgan argues that the XRP price movement is influenced more by the prevailing Bitcoin (BTC) trend rather than the supply shock. His comment comes amid some crypto community members claiming that the availability of the Ripple-backed coin is rapidly diminishing on exchanges.

Bill Morgan Dismisses XRP Supply Shock Theory

In an X post, expert Bill Morgan, also a Ripple advocate, commented on the growing discussions surrounding the XRP supply shock theory. He countered the XRP supply shock theory, similar to how he criticized the Ripple escrow dump theory. 

Morgan argued that the supply shock theory has no significant explanatory value in understanding XRP price movements. Rather, he highlighted the Bitcoin price movement as the predominant factor influencing XRP.

The Ripple advocate was responding to comments alleging an XRP supply decline on exchanges worth 1.5 billion coins. This situation can be linked to changing investor sentiments. Large holders, often referred to as whales, are reportedly moving their coins to centralized exchanges (CEXs), possibly for long-term custody.

In addition to Morgan, Vet, an  XRPL dUNL validator, also dismissed the XRP supply shock myth. He argued that holders have about 16 billion XRP readily available on exchanges, which is enough to go around.

Vet added that XRP holders on exchanges could send their coins in seconds if the price fluctuates upwards or downwards.

As a result,  XRP listed on order books for sale is dynamic. Due to the elastic nature, it can thicken or dry out in seconds, back and forth. Vet noted that in some cases, a $10 million buy can push the price higher. In contrast, even a $100 million purchase does not stop the price from going down sometimes.

Is XRP a Guaranteed Path to Wealth?

Many industry leaders have weighed in on the XRP supply shock myth. They have raised concerns about its potential impact on the price of the digital asset.

Others think it is a direct influence of the growing demand for XRP exchange-traded funds (ETFs). Since the spot XRP ETF launched in late November, the funds have reportedly accumulated over $1.25 billion in net assets. 

As highlighted in our previous article, the XRP ETFs even outpaced their BTC and Ethereum counterparts in a day. Specifically, on December 4, spot XRP ETFs attracted $12.84 million, while Bitcoin and Ethereum ETFs recorded net outflows.

Note that as the XRP expands, the number of coins available on exchanges for direct trading is declining.

According to unknownDLT, a popular crypto voice on X, XRP ETFs are increasingly absorbing the available supply. In recent weeks, a massive 750 million tokens were absorbed. Thus, the analyst believes that the market will see a possible XRP supply shock by early 2026.

XRP ETFs are absorbing supply fast. With only ~1.5B XRP left on exchanges and ~750M absorbed in weeks, a supply shock is likely by early 2026.

This aligns with the Clarity Act, forcing price discovery and enabling real institutional use.

2026 is the inflection point where XRP… pic.twitter.com/FVhwiVgi4B

— {x} (@unknowDLT) December 26, 2025

Amid the XRP supply shock thesis, many investors believe their holdings alone will make them rich. The XRP price has surged minimally by 0.8% over the past 24 hours to $1.9, while trading volume jumped 60.3% to $1.7 billion.

In a previous article, we discussed, market analyst Jake Claver stressed that simply holding XRP is not a guaranteed path to wealth. He, therefore, urged investors to prioritize smart custody, smart tax planning, and proper wealth structures.