A recent hydraulic pipe analogy from Dr. Jim Willie confirms that XRP could skyrocket if just 5% of Bitcoin capital flows into XRP.
Notably, during a recent appearance on the Black Swan Capitalist with host Versan Aljarrah, marketing research analyst Dr. Jim Willie shared an interesting analogy to explain how capital flowing out of Bitcoin and into XRP could lead to an explosive price surge.
Dr Jim Willie’s Hydraulic Pipe Analogy
Speaking on this effect, Willie compared Bitcoin’s large market to a wide hydraulic pipe and XRP’s smaller market to a much narrower one. He explained that when pressure moves from a larger tube into a smaller tube, the force increases massively because the area scales with the square of the radius.
He applied this to crypto, arguing that when traders take profits from Bitcoin or Ethereum and redirect them into XRP, the smaller market behaves like the narrow pipe. This usually leads to rapid and amplified price movements. Dr. Willie added that the effect could become even stronger once XRP ETFs enter the market.
Details of the Analogy for XRP Price Action
Interestingly, Rob Cunningham of the KUWL show picked up on Willie’s remarks and discussed the analogy with figures in a recent X commentary.
Dr Jim Willie Hydraulic Pipe Analogy
MUST HEAR: @VersanAljarrah’s terrific interview – including this video clip below – taking a hypothetical look at future Bitcoin and XRP prices with small liquidity flow changes.
The Setup
•Let Bitcoin’s market cap be M.
•XRP’ market… pic.twitter.com/uT593bgRc6— Rob Cunningham | KUWL.show (@KuwlShow) September 21, 2025
Notably, he first presented a framework that assumed that Bitcoin’s market cap equals M. In this case, XRP’s market cap is M divided by 13, making XRP roughly thirteen times smaller.
Here, if a flow of size F exits Bitcoin and moves into XRP, the smaller market would absorb that flow with far more force. Cunningham explained that market impact tends to scale with the ratio of flow to liquidity depth, and since depth tracks market cap, the same amount of money that barely shifts Bitcoin could push XRP thirteen times harder.
Further, he also noted that real trading isn’t linear. Notably, order books thin as large trades sweep through them, spreads widen, and liquidity providers step back.
In smaller markets, the price can move in ways that look quadratic rather than linear. As a result of this, a thirteen-fold gap in liquidity can easily turn into candles tens or even hundreds of times more extreme on XRP compared to Bitcoin.
Possible Speeds of Rotation
He then outlined how different speeds of rotation might work. Specifically, if the rotation happens slowly over weeks, market makers would have time to adjust, and XRP could climb 2 to 5x from its base while Bitcoin drops lower in an orderly way.
Meanwhile, if the flows take only days, Bitcoin would likely see sharper dips while XRP could jump 5 to 20x before correcting. However, if the shift happens within hours, Bitcoin might experience sudden declines while XRP could shoot up vertically, sometimes 10 to 20x in a single day, before crashing back just as fast.
Cunningham highlighted several hidden forces that could boost the move. He claimed that only about 5% of XRP’s total supply trades freely, which means any new money hits a very thin float.
In addition, liquidity also spreads across multiple exchanges, so slippage gets worse. Moreover, derivatives such as perpetual futures can force buy-ins during squeezes, and rising prices tend to draw in more traders chasing the move. Essentially, this feeds a loop of momentum.
What Could a 5% Rotation from Bitcoin Mean for XRP Price?
At the time of his commentary, Bitcoin’s market cap stood near $2.3 trillion with a price of around $116,000, and XRP’s valuation was around $180 billion, with a price of $3. This maintained the one-to-thirteen ratio.
A 5% rotation out of Bitcoin equals $115 billion. If that $115 billion flowed into XRP, its market cap would rise from $180 billion to roughly $295 billion. Notably, this translates to a price of $4.90 per token.
However, markets don’t move in such straight lines. Due to how shallow order books are, the actual result could be much higher. Under slow rotation, XRP could climb from $3 to a range of $6 to $15. However, with faster flows, it could reach between $15 and $60, representing the 5 to 20x rise projected by Cunningham.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
