XRP News Today: Crypto Markets Face $688 Million Liquidations Amid U.S.-China Trade Tensions

Crypto markets experienced significant turmoil in the past 24 hours as Bitcoin (BTC) prices dipped below $104,000, resulting in over $600 million in liquidations of bullish futures positions. This marked the highest level of liquidations since February, indicating a substantial shift in market sentiment.

The total amount of liquidations reached $688 million, with 89% of these losses occurring on the long side, highlighting the prevalence of bullish positions in the market. The largest single liquidation order was a $12.25 million BTC/USDT position on OKX, according to Coinglass data. Bitcoin-tracked futures led the losses with over $153 million in liquidations, followed by Ethereum (ETH) at around $122 million. Other notable cryptocurrencies affected included Solana (SOL) with about $33 million in liquidations, XRP futures at $30 million, and Dogecoin (DOGE) futures at over $22 million.

The market downturn was exacerbated by renewed trade tensions between the U.S. and China. U.S. President Donald Trump accused China of violating a bilateral trade deal, leading to a doubling of tariffs on steel and aluminum to 50% to safeguard domestic industries. Trump claimed that China had reneged on a May agreement aimed at easing trade tensions and hinted at discussing the matter with President Xi. This move rattled global trade markets and had potential implications for key minerals and overall relations between the two nations.

The broader crypto market was also impacted by the sell-off, with Ether dropping nearly 4%, XRP and Solana falling around 4-5%, and Dogecoin diving over 8% on the day. Data from Deribit showed that open interest in Bitcoin futures had surged 51% since April, with options up 126%, indicating a growing appetite for leverage among investors. However, large holders with more than 10,000 BTC have shifted from accumulation to net selling, suggesting profit-taking behavior.

A cascade of liquidations often signals market extremes, where a price reversal could be imminent as market sentiment overshoots in one direction. The renewed tariff flare-up, combined with a jittery derivatives market, has traders preparing for more volatility ahead. The market's reaction to these events underscores the sensitivity of crypto markets to broader economic and geopolitical developments, highlighting the need for cautious navigation in the current environment.