XRP Hit by $58.8M Liquidations as Crypto Market Tumbles

XRP has been caught in the fallout of a sharp market correction, as the broader cryptocurrency sector experienced over $860 million in bullish position liquidations within just 24 hours. Driven by unexpectedly high U.S. Producer Price Index (PPI) data, investor anxiety over lingering inflation and the possibility of delayed Federal Reserve rate cuts triggered a widespread sell-off.

In the wake of this inflation data, traders began unloading riskier assets, reversing recent bullish sentiment. XRP, along with major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), saw prices sink dramatically, with XRP plunging nearly 7%. According to Liquidation data, nearly $58.8 million worth of XRP long positions were wiped out as the market turned sharply downward.

The wipeouts came shortly after Bitcoin hit a new all-time high above $123,500 — an emotional peak that quickly gave way to selling pressure across the board. The crypto liquidation bloodbath affected not only XRP but also Ethereum and Dogecoin (DOGE), with ETH traders facing the highest losses at $348.9 million. BTC followed with $177.1 million in liquidated long positions. While Dogecoin dropped by 9%, XRP and Solana (SOL) saw between 3% and 7% cuts.

Overall, more than $866 million in long orders were wiped out — dwarfing the $140 million in short positions that were liquidated. This stark contrast highlights the strong bullish sentiment prior to the sudden downturn, leaving many traders exposed to swift losses.

Leading crypto exchanges bore the brunt of these leveraged position losses. Bybit was hit hardest, chalking up $421.9 million in liquidations, with over 92% being long positions. Binance trailed at $249.9 million, and OKX followed with $125.1 million. The single largest liquidation was traced to an ETH-USDT perpetual contract valued at $6.25 million on OKX.

Jeff Mei, Chief Operating Officer at BTSE, commented on the sudden downturn: “The surprise inflation data halted what had been a stellar week for crypto markets.” He went on to suggest that the current market stagnation may persist until more encouraging signals emerge from the Federal Reserve.

Nick Ruck, Director at LVRG Research, stressed the importance of understanding macroeconomic forces at play. “Crypto had a strong start with BTC reaching new highs,” he said in a Telegram update. “But macro indicators — especially a hotter-than-expected inflation number — have dealt a shock to bullish momentum.” He emphasized that crypto assets remain heavily influenced by global liquidity trends and noted that upcoming labor data could influence the Fed’s next monetary policy move.

Related: XRP Price: $12M Max Pain for Bears

Looking ahead, all eyes are on key U.S. economic indicators and central bank communications, particularly as September could mark the next critical moment for interest rate decisions. This macro sensitivity underscores the importance of cautious risk management, especially for XRP and other cryptocurrencies during periods of economic uncertainty.