14.02.2025 18:42
XRP's recent price surge has sent shockwaves through the cryptocurrency market, eclipsing even Bitcoin in one-hour liquidation figures, a phenomenon that has left many analysts scrambling for explanations. Over the past two days, XRP has demonstrated remarkable bullish momentum, culminating in a significant price rebound. This unexpected rally has triggered a wave of liquidations for both long and short positions, highlighting the volatility of the market.
CoinGlass data reveals a staggering $1.07 million in XRP liquidations within a single hour. A significant portion of this, $596,580, stemmed from traders holding long positions who were caught off guard by the sudden price increase. Conversely, short position traders incurred losses totaling $476,140, demonstrating the widespread impact of XRP's price jump. This contrasts sharply with Bitcoin's relatively modest $109,270 in total liquidations during the same period. The imbalance is even more striking when comparing long and short liquidations for Bitcoin, with long positions losing more than three times the amount of short positions.
The frenzy surrounding XRP's price action is largely attributed to speculation fueled by Grayscale's application to transform its XRP Trust into a spot ETF. This move ignited considerable investor enthusiasm, resulting in a dramatic 47.39% surge in trading volume, reaching a remarkable $8.05 billion. This heightened activity is further amplified by broader market expectations of a potential SEC withdrawal of its appeal against Ripple, a development viewed favorably by many within the cryptocurrency community.
Adding fuel to the fire, the SEC's acknowledgement of key filings for an XRP ETF has been widely interpreted as a positive signal. Ripple CEO, Brad Garlinghouse, even characterized the SEC's decision as an inevitable outcome, despite facing opposition from certain quarters. The confluence of these factors – Grayscale's ETF application, hopes for SEC leniency, and the SEC's acknowledgement – has created a perfect storm, driving XRP's price and leading to these unprecedented liquidation levels.
