XRP News Today: Crypto Market Drops 2.47% Amid Geopolitical Tensions and Profit-Taking

The global cryptocurrency market experienced a significant downturn, with the total market capitalization falling by 2.47% to $3.32 trillion. This decline was driven by a combination of factors, including escalating geopolitical tensions between Israel and Iran, and profit-taking following the release of the U.S. Consumer Price Index (CPI) report.

Bitcoin, the largest cryptocurrency by market capitalization, bore the brunt of the crash. Prices slid nearly 4% in 24 hours, pulling BTC below $104,000. Nearly $317 million in long positions were liquidated in a day, with the majority, over $306 million, being long bets. Despite this drop, Bitcoin is still holding a 5% gain for the week, as it peaked above $110,000 on Tuesday.

Ethereum, the second-largest cryptocurrency, also experienced a significant decline. Prices fell over 6% on the day, crashing down to $2,650. Despite this drop, it’s still up about 9% on the week, thanks to an earlier surge. Daily liquidations for ETH totaled $151 million, second only to Bitcoin.

Altcoins like Solana, XRP, and Dogecoin were hit even harder. Solana tumbled over 6% to $152.80, XRP dropped 4% to $2.20, and Dogecoin was the day’s worst performer, down 7% to $0.181. DOGE’s steep fall makes it the biggest loser among the top ten cryptocurrencies.

The escalating tensions in the Middle East, particularly the airstrike launched by Israel on Iran’s nuclear site, scared global investors. Many rushed to safer options like gold, causing it to jump 5%, while risky assets like crypto dropped. The selling pressure began after the release of the U.S. CPI report on Wednesday, which showed cooling inflation for May. While that might seem like good news, the market reacted with a round of profit-taking, pushing prices down instead.

In total, the market saw over $713 million in liquidations over the past 24 hours, $650 million of those from long positions. The broader market is now down roughly 5% in a day, with traders rethinking their bullish positions amid rising volatility. The conflict has raised concerns about the stability of the region and the potential for further escalation, which could have lasting effects on the cryptocurrency market. Analysts have noted that geopolitical tensions often lead to increased volatility in the crypto market, as investors seek safe-haven assets. The sudden escalation in tensions between Israel and Iran has highlighted the sensitivity of the cryptocurrency market to geopolitical events. As the situation continues to unfold, investors will be closely monitoring developments in the Middle East and their potential impact on the crypto market. The conflict has served as a reminder of the risks associated with investing in cryptocurrencies, particularly during times of geopolitical uncertainty.