Bitcoin, Ethereum and Ripple price crashes, liquidations hit nearly $500 million as XRP hype dissipates


Share:
  • XRP, XLM and other altcoins enjoyed massive gains after Ripple’s partial win against the SEC.
  • The weekend, however, looks bleak, with liquidations in the past 48 hours reaching as much as $473 million.
  • As the bearish momentum declines, investors on major exchanges turn bearish. 

Bitcoin (BTC) price showed weakness late on July 14, causing it slip below $31,000. This move from the pioneer crypto dampened the bullish momentum that arose on July 13 after the judge ruled partially in favor of Ripple in the long-standing United States Securities and Exchange Commission (SEC) vs. Ripple lawsuit. While Ripple’s XRP more than doubled, its competitor Stellar (XLM) token, shot up 107% in under 24 hours. Other altcoins like Cardano (ADA) also saw massive gains. But as the weekend rears its head, the optimism seems to be dissipating. 

More Ripple/XRP coverage

XRP update: Ripple win in landmark SEC case likely puts XRP and crypto market in jeopardy for these reasons

Can XRP price hit $1? Watch these levels next

Breaking: Ripple records landmark win against the SEC as court rules XRP is not a security except...

Crypto markets bleed as bulls disappear

From the announcement of Ripple’s partial win against the SEC on July 13 to date, $473 million worth of positions have been liquidated, according to data from CoinGlass. As seen in the chart below, there are massive short and long liquidations on July 13 and 14, respectively.  The last time a liquidation event of this magnitude occurred was between June 5 to 10. 

Total Liquidations chart

Total Liquidations chart

XRP price, which exploded from $0.469 to $0.938 on July 13, has since dropped 22% and currently trades at $0.726.

Ripple’s close competitor, XLM price went from $0.0953 to $0.197 and has since shed a whopping 32% and currently auctions at $0.133. 

Why the sudden shift in market sentiment?

The stark shift in the mood of investors could be attributed to three reasons:

  1. An inherently bearish market outlook before the announcement of the SEC vs. Ripple lawsuit decision. 
  2. More commentary on the lawsuit started surfacing after the initial announcement, which allows the SEC to contest the decision in the second circuit court of appeals. Moreover, the decision is partly a win for the commission as well since XRP sold to institutions constitutes security. 
  3. Mean reversion; markets often revert to mean after the hype or frenzy dissipates, and the ongoing pullback could be just that. 

Due to the aforementioned reasons, the crypto markets seem to be returning to the mean, undoing recent gains. A sign of this can be seen as investors on exchanges have flipped their narrative to bearish.

Read more: Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Weekend price swings to kick in


Like this article? Help us with some feedback by answering this survey:



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

PEPE price inches closer to 2024 peak with top crypto exchanges teasing PEPE memes on X

PEPE price inches closer to 2024 peak with top crypto exchanges teasing PEPE memes on X

PEPE’s social dominance and relevance have been increasing since February 20. This week, top cryptocurrency exchanges have shared PEPE and related memes in tweets on their official X handle. 

More PEPE News

SEI, Omni Foundation propose standard to unify Ethereum NFTs

SEI, Omni Foundation propose standard to unify Ethereum NFTs

SEI and Omni Foundation could help NFTs across the Ethereum ecosystem transition to scaling solutions and rollups. The two have proposed a new token standard, xERC-721, with a “code minimized” upgrade to the current standard. 

More Cryptocurrencies News

Bitcoin Weekly Forecast: BTC likely to correct to $50,000 soon

Bitcoin Weekly Forecast: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

More Bitcoin News

XRP price plunges as Kraken cites SEC v. Ripple lawsuit in its legal battle against the regulator

XRP price plunges as Kraken cites SEC v. Ripple lawsuit in its legal battle against the regulator

XRP price inches closer to support at $0.52 after the recent developments related to the SEC’s lawsuit against Ripple. Kraken cited a key part of the SEC’s lawsuit against Ripple that could impact the outcome of its own legal battle against the regulator. 

More Ripple News

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

Read full analysis

BTC

ETH

XRP