Why XRP Investors Should Be Wary of Banks in 2025 – Analyst Sounds the Alarm

Banks and crypto? Still not the love story we were promised.

XRP holders, brace yourselves—traditional finance might be your biggest hurdle yet. A sharp-eyed analyst just dropped a truth bomb about why banks could kneecap your gains. Here’s the breakdown.

The Fine Print Fiasco

Banks love control. XRP’s decentralized vibe? Not exactly their cup of tea. Institutions are still clinging to legacy systems like a Wall Street boomer to a fax machine. Liquidity crunches, regulatory foot-dragging—pick your poison.

The Compliance Trap

Think KYC is a hassle? Wait till banks hit you with ‘enhanced due diligence’ for touching XRP. Every transaction could turn into a paperwork marathon. Speed and cost savings? Gone faster than a bull market in a Fed meeting.

The Bottom Line

XRP’s tech is solid. The banks? Not so much. Until institutions stop treating crypto like a rogue intern, investors might keep playing a rigged game. Pro tip: Watch those ‘strategic partnerships’—most are just PR fluff to pump stock prices.

Banks Allegedly Suppressing XRP For Control

In a July 20 X social media thread, crypto analyst Pumpius issued a stark warning to investors, alleging that major banking institutions are deliberately pushing negative narratives about Ripple Labs to drive down the xrp price for their gain. The analyst noted that the recent backlash over Ripple’s efforts to obtain a national trust bank charter and secure access to the US Federal Reserve system is not driven by regulatory caution. Instead, he claims it’s part of a calculated attempt to discredit XRP while banks quietly accumulate millions of tokens at a discount. 

Pumpius argues that labeling Ripple’s bank charter as “risky” may be part of a coordinated effort to spread Fear, Uncertainty, and Doubt (FUD) among retail investors. This tactic, he contends, allows institutions to pressure regulators and influence the media into publishing warnings that suppress XRP’s market value and slowly relinquish control from retail investors.

Furthermore, the analyst alleges that banks are not anti-crypto, but anti-public access to transformative crypto assets like XRP. With Ripple inching closer to a full-scale integration into the US financial system, including potential direct FED access, Pumpius suggests that traditional institutions may see XRP as a significant threat to their dominance. 

The analyst also claims that the volatility in XRP’s price is no coincidence but a deliberate effort to shake out weak hands. He asserts that the ultimate goal is to transfer ownership from retail investors to institutional players before a major breakout occurs. 

Fear-Driven Sell Offs Open Doors For Whales

In his X post, Pumpius also expanded on the broader market behavior surrounding XRP. He pointed to whale activity as a clear sign that major players are using market dips as possible accumulation zones. According to the report, each time negative news hits the headlines, there’s a corresponding spike in large-volume XRP purchases. This suggests that institutional entities may be leveraging retail panic and fear-driven sell-offs as a buying opportunity. 

Pumpius also notes that while many investors are shaken out of their positions, whales with long-term convictions or insider knowledge are reportedly increasing their holdings. He concludes that the current market cycle represents an ”accumulation war,” where institutions are allegedly leveraging narrative manipulation to push price down and potentially gain control over XRP’s future upside. The analyst further warns that by the time the price of XRP explodes, the opportunity to buy at low levels will have already passed for most investors.