In a recent inquiry, we turned to ChatGPT to provide an estimate of the potential market value of XRP if it were to have a spot exchange-traded fund (ETF) similar to Bitcoin. Initially, the AI system acknowledged the challenge of accurately predicting the value of XRP in light of the emergence of ETFs. However, it leveraged Bitcoin’s historical data after the approval of its ETF to offer an informed projection for XRP’s potential market value.
Looking at Bitcoin’s historical data, we can see that on January 10, when the US regulator approved the first spot crypto ETFs, Bitcoin was trading at a low of $44,483. Two months later, it reached an all-time high of $73,750. Overall, Bitcoin experienced a return of approximately 66% in about 63% after the approval of its ETF.
Applying this hypothetical case to XRP, which is currently valued at $0.5289, ChatGPT envisioned a scenario where an XRP ETF would have a similar impact on its price as Bitcoin’s ETF. A 66% increase from its current price would raise the value of XRP, the seventh-ranked cryptocurrency, to approximately $0.878. Therefore, the AI system concluded that XRP’s price could potentially reach around $0.878, following a trajectory similar to Bitcoin’s 63-day period after ETF approval.
However, it’s important to note that while a 66% rally was significant enough for Bitcoin to reach a new all-time high, the same percentage growth has a less significant impact on altcoins like XRP. Even at the $0.878 price level, XRP is still 77% away from its previous all-time high of $3.84.
Considering that altcoins have been known to outperform Bitcoin, it could be expected that XRP would experience a more substantial percentage growth with ETFs than the 66% achieved by BTC. ChatGPT also highlighted various factors such as market conditions, investor behavior, and regulations as potential catalysts for higher price levels. The AI system emphasized the crucial role of overall market sentiment at the time of approval, as demonstrated by Bitcoin’s ETF approval during a bull market.
When asked about the possibility of XRP surpassing the $1 threshold following ETF approvals, ChatGPT agreed. It pointed out that factors like increased demand for XRP driven by ETFs, higher liquidity due to greater trading volumes, market hype, and fear of missing out (FOMO) could drive XRP’s price significantly higher than anticipated. Ultimately, ChatGPT concluded that a realistic price range for XRP following ETF approval would be between $0.83 and $1.2.
It’s worth noting, however, that the prospect of an XRP ETF becoming a reality is uncertain as no asset manager has filed for it despite XRP’s clear regulatory status in the US. Nevertheless, market participants eagerly await this development, and some argue that the US SEC’s approval of Ethereum spot ETFs could pave the way for other crypto asset ETFs like XRP.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The views expressed in this article are solely the author’s and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, as The Crypto Basic is not responsible for any financial losses incurred.