XRP News Today: Bitcoin Drops 2% as US-Russia Tariff Fears Trigger Market Pullback

Bitcoin's bull run, which had been gaining momentum, was disrupted by fears of new tariffs between the US and Russia. The total crypto market cap briefly surpassed $3.8 trillion, reaching an intraday high of $3.89 trillion before retreating. Throughout the day, investors maintained a strong risk-on stance, with the Fear & Greed Index anchored at 74, indicating a state of "Greed." However, the momentum shifted as geopolitical tensions emerged, causing Bitcoin to drop over 2% from its intraday high, trading just above $120,000 as traders trimmed positions amid renewed uncertainty.

Several bullish catalysts had been driving Bitcoin's rally, including the consideration of three pivotal crypto-related bills on Capitol Hill. The GENIUS Act, aimed at establishing stablecoin oversight, has already cleared the Senate and is expected to pass in the House. The CLARITY Act seeks to define jurisdictional boundaries between the SEC and the CFTC, offering legal clarity for crypto projects. Additionally, a bill aiming to prohibit the Federal Reserve from issuing a central bank digital currency is under consideration, reinforcing pro-crypto sentiment. Optimism around a potential policy shift from the Federal Reserve and improving macroeconomic conditions also contributed to the rally. Institutional flows into crypto ETFs, with spot Bitcoin ETFs recording over $2.72 billion in net inflows last week, played a key role in driving prices higher.

However, the US threatening fresh tariffs on Russia unless the Ukraine conflict is resolved within the next 50 days sparked caution across global markets. This warning triggered a brief risk-off pullback, with Bitcoin dropping over 2% from its intraday high. The broader macro backdrop remains supportive, but the tariff threat adds a layer of volatility in the short term. Market participants will be closely watching for further developments out of Washington, as any escalation could pressure risk assets further, even as rate cut expectations and ETF inflows continue to underpin longer-term bullish sentiment.

Looking at the 24-hour Binance BTC/USDT Liquidation Heatmap, bears were already eating into stacked long positions clustered between the $121,000 and $120,000 range, triggering a cascade of liquidations as the price broke below key intraday levels. On the downside, liquidity remains dense between $117,000 and $118,000, marking a critical support area where aggressive buying interest could emerge if the correction deepens. If Bitcoin breaks below this zone, the next cluster of liquidations appears near $115,500, which could act as a final line of defense before the trend structure is meaningfully challenged. Upside pressure, meanwhile, faces stiff resistance around $122,000 and again near $123,500, where multiple short liquidations are positioned. A clean move above these thresholds could reignite bullish momentum and potentially open the door for a rally towards $130,000.

From here, Bitcoin’s next move will likely hinge on macro cues and whether dip-buyers can defend the $117,000–$118,000 range. A rebound off that zone, paired with easing geopolitical tensions, could set the stage for a sharp recovery and another test of record highs. When looking at the long-term picture, analysts are pointing to structural similarities with previous breakout phases, particularly the early 2024 rally that preceded a 50% move. According to pseudonymous market commentator Edward, the current setup mirrors that earlier breakout, with $135,000 to $140,000 no longer viewed as speculative, but simply one clean breakout away. However, Edward flagged a key cluster of interest around $115,500 to $116,500, a zone that could serve as a structurally sound retest if the $120,000 level fails to hold.

The altcoin market cap fell by 11% to $1.44 trillion over the past 24 hours, as $779.74 million worth of assets were liquidated across the total crypto market, as renewed macroeconomic concerns weighed on investor sentiment. Investors showed a mixed sentiment towards the top 100 altcoins by market cap. While Ethereum (ETH), Solana (SOL), and XRP (XRP) held onto minute gains of 1%, 1.2% and 5.3% respectively, Tron (TRX), Cardano (ADA), and Hyperliquid (HYPE) saw losses between 1-2%. Sui (SUI) led the highest gains among them, holding up 11.9% over the day, while XDC Network (XDC) and Uniswap (UNI) were up 9% and 7.6% respectively. Sui’s rally may have been driven by its DeFi total value locked (TVL) hitting a new all-time high of $2.20 billion. A rise in TVL usually points to growing activity on the network, which often supports price growth. XDC Network may still be riding residual momentum from 21Shares’ launch of a dedicated exchange-traded product earlier this month. The ETP, listed under the ticker XDCN on Euronext Paris and Amsterdam, offers institutional investors direct exposure to the XDC Network. Whale accumulation is driving Uniswap’s gains today, supported by data from Nansen, which shows that these large holders currently hold 5.25 million UNI tokens, up 56% over the last 30 days. Such a surge in whale activity often boosts market confidence in the related asset, prompting retail investors to follow suit.