Analyst Breaks Down Why Investors will Make More Money With XRP Than Bitcoin

Markets 2026-01-12 09:57

A crypto market participant has outlined a numerical comparison showing how the same investment amount could generate significantly different returns depending on whether it is placed into Bitcoin or XRP. 

The projection, which was shared on X and focuses on price levels and capital growth, shows how XRP has a better upside on a percentage basis compared to Bitcoin at its current valuations.

How The Numbers Favor XRP Over Bitcoin

The comparison starts with a $5,000 investment. At current prices, Bitcoin would need to rise to around $180,000 for that initial $5,000 investment to double to $10,000. Interestingly, multiple bullish predictions put Bitcoin reaching a price target of at least $180,000 in the next few months, so this is most likely a guarantee. However, Bitcoin’s position as the largest cryptocurrency works as both an advantage and a constraint.

At the time of writing, Bitcoin has a large market cap of $1.8 trillion. Given Bitcoin’s already large market cap, any move of notable magnitude requires huge capital inflows over an extended period of time. Its recent adoption among institutional traders and role as the largest cryptocurrency provide stability, but its size limits how quickly it can multiply in value. Each incremental gain requires increasingly larger amounts of new capital entering the market.

On the other hand, XRP has a much smaller market cap of $128 billion. Using the same $5,000 investment in XRP produces a much different outcome under the analyst’s assumptions. If XRP reaches a $10 price level, the value of that position would rise to $25,000.

 Therefore, this means that, as it stands, XRP has a much better profit potential than Bitcoin. The argument presented is not that Bitcoin lacks upside, but that the capital efficiency of XRP is higher if both assets move to commonly cited bullish targets.

Risk Profiles And Return Expectations

The difference in projection also shows different risk tolerances of both cryptocurrencies. Bitcoin is more appealing to investors who prioritize long-term exposure and relative stability. Predictions for Bitcoin range from $150,000 all the way to above $1 million.

XRP, on the other hand, will attract traders who are willing to accept higher volatility in exchange for the possibility of larger returns. The cryptocurrency has been the subject of numerous bullish projections from analysts due to the growing optimism around its role in financial institutions and the recent exposure through Spot XRP ETFs.

The bullish sentiment is so strong that a few analysts are already projecting how XRP has the potential to trade at $100 in the next few years. One analyst, for example, noted that XRP has the potential to reach $100 before Bitcoin reaches $1 million and that it can even hit $1,000 before Bitcoin hits $19 million.

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This content is for informational purposes only and does not constitute investment advice.

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