XRP Drops 12% as Crypto Market Sees $1 Trillion Wiped Out

The cryptocurrency market experienced a sharp downturn at the start of the week, with several major tokens suffering double-digit percentage losses.

XRP, the digital asset affiliated with Ripple, plummeted 12%, reaching an intraday low of $2.07. Dogecoin (DOGE) and Cardano (ADA) also faced substantial declines, recording losses of 10.6% and 13.4%, respectively. Meanwhile, Bitcoin (BTC), the leading cryptocurrency, fell 2.6% after briefly crossing the $100,000 mark earlier in the week.

In what is shaping up to be the worst trading day for cryptocurrencies in four months, the market collectively shed approximately $1 trillion in value. Data from CoinGlass reveals that $1.76 billion worth of cryptocurrency positions were liquidated over the past 24 hours. Notably, long positions accounted for $1.58 billion of this total, with nearly 600,000 trades being liquidated. Among these, a single ETH/USDT trade on the Binance exchange resulted in a staggering $19.69 million loss.

Binance, the world’s largest cryptocurrency exchange, bore the brunt of the liquidations, recording $756.26 million in total. Ethereum (ETH) surpassed Bitcoin in terms of liquidated long positions, with $223 million and $148 million respectively. Other assets such as Solana (SOL), Dogecoin (DOGE), and XRP also ranked among the top five in liquidations, reflecting their heightened speculative activity in recent months.

Market analysts suggest that if retail investors react with panic selling, a swift rebound may occur in alternative assets like TRX, AVAX, DOT, ICP, POL, FIL, and TIA. This volatility highlights the speculative nature of the cryptocurrency market and its susceptibility to rapid fluctuations in sentiment.