🚩 Analyst refutes claims that Japan could trigger a massive XRP surge

Renewed discussions about Japan's monetary policy have sparked fresh optimism among XRP supporters, with some believing that the potential easing of short positions on the Japanese yen could drive XRP prices higher.
However, XRP community commentator Eri believes this narrative may be ahead of reality.
🔸 Eri doubts three reasons behind XRP's recent surge
Eri refutes the idea that Japan's monetary policy will trigger a short-term rise in XRP prices and presents three key reasons.
First, she points out that Japan's tightening cycle is very slow. Interest rates rising from -0.1% in 2023 to 0.75% by the end of 2025 give institutions and leveraged traders ample time to adjust their positions rather than being forced to liquidate suddenly.
Second, Eri says the conditions for a major yen short-selling shock are still some distance away. In her view, more meaningful market stress events are unlikely to occur until Japanese interest rates approach 1.5%, and she estimates this level may still take 18 to 24 months to reach.
Third, she highlights XRP's liquidity constraints. Citing comments from Brett Mollin, head of the XRPL Foundation, Eri notes that stablecoins like USDT and USDC still dominate global settlement flows because they offer deeper liquidity and larger trading markets. Therefore, she believes stablecoins, rather than XRP, remain the preferred bridging assets in many international transactions.
Considering these factors, Eri concludes that the expectation of a Japan-driven XRP price explosion may be overestimated, even though she remains optimistic about XRP's long-term potential.