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


  • 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.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP