Why Crypto Is Down Today? $588M Liquidations Hit XRP, Bitcoin, and Ethereum

The US stock market has taken a massive hit, losing over $1.5 trillion in a single day, and the crypto market felt the heat. This bloodbath has been triggered by a series of events, including the Federal Reserve’s rate cuts and global tensions, like Israel’s airstrikes on Iran-backed groups in Yemen.

Let’s dive into what sparked this sell-off in Satoshi Street today and what it means for the future of crypto.

A Brutal 24 Hours

In the last 24 hours, the crypto market experienced a huge sell-off, wiping out $588 million in liquidated positions. XRP was hit hardest, with $69 million in liquidations after briefly peaking at $2.82—the highest it’s been since 2017—before dropping to $2.56. Bitcoin saw $60 million in liquidations as its price fell below $96,000. Ethereum wasn’t spared either, losing nearly $58 million

Why the Market is Nervous

A recent report from Santiment shows that traders are nervous after the Federal Reserve’s recent interest rate cuts. While the rate cuts themselves weren’t the biggest concern, the Fed’s projection of fewer cuts in 2025 than expected has spooked both crypto and stock traders.

This uncertainty, combined with a market shift from “Extreme Greed” to “Fear,” contributed to the recent sell-off.

Altcoins have been particularly affected by the sell-off. Assets like Avalanche, Chainlink, Litecoin, and Pepe have all dropped around 16% in the last 24 hours. XRP fell 6.74%, now trading at $2.35, while Solana saw a 9.79% decline over the past week, now priced at $208.49.

A Few Winners Amid the Chaos

Not all cryptocurrencies are suffering. Ethena (ENA) has risen 11.66%, trading at $1.18, thanks to new utility features. Movement (MOVE) has also posted a strong gain of 11.48%, now priced at $0.7171, driven by strong community engagement. 

After the Fed rate cut, Bitcoin and crypto took a hit, with Bitcoin dropping 5.85% read Bitcoin price prediction to find out what’s next for the market!

More Bloodbath in January?

Looking ahead, former BitMEX CEO Arthur Hayes has warned that the crypto market might see another major sell-off around Donald Trump’s inauguration on January 20, 2025. Hayes believes that the market may not recover quickly after Trump takes office, as many regulatory policies could be delayed due to political conflicts. This delay could lead to further market sell-offs.

Despite the current downturn, some analysts see this as a potential buying opportunity. They believe 2025 could be Bitcoin’s year, with a few more drops expected before it hits new all-time highs (ATH). Additionally, rumors of a new Bitcoin ETF launching next year could help the market recover from its recent losses.

As 2025 approaches, the future of digital assets remains a high-stakes game—who will come out on top?

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