XRP News Today: Massive $500M+ Liquidations Trigger Crypto Market Deleveraging Amid Volatile Price Correction

More than $500 million in leveraged long positions across Bitcoin and XRP were liquidated following a sharp price correction in late July and early August 2025, as traders de-leveraged in response to a broad market pullback. XRP traders alone faced $1.26 million in liquidations within an hour as the token's price fell 5.7% to $2.92 [1]. This imbalance between bullish and bearish positions reached 32,474% in favor of long positions being erased within a single hour, underscoring the extreme volatility of leveraged trading [2].

Bitcoin, the largest cryptocurrency by market capitalization, also experienced a significant decline, dropping below $115,000—an 11-day low—on August 18, 2025, following a wave of over $500 million in liquidations [3]. Over the past week, more than $1.7 billion in long futures positions were wiped out, reflecting a broad shift in sentiment as traders adjusted to recent price highs and emerging uncertainties.

The price correction was amplified by mixed macroeconomic signals, particularly a hotter-than-expected wholesale inflation reading, which weakened expectations for a 0.5% interest rate cut by the U.S. Federal Reserve in September [4]. Investors are now closely watching Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole Economic Symposium on August 23 for clarity on the central bank’s policy direction.

Crypto derivatives analysts have emphasized the fragility of the market following a rapid price surge. Samer Hasn of XS.com noted that the sharp pullback reflects a “deleveraging” effect after the recent euphoric rally [4]. Meanwhile, Dean Chen from Bitunix warned that if Powell adopts a cautious stance, Bitcoin could struggle to break past $120,000 in the near term and may consolidate in a $115,000–$120,000 range [4].

The downturn also impacted major altcoins. Solana, Dogecoin, and Chainlink all faced significant liquidation risks during the same period. Ethereum, the second-largest cryptocurrency, fell to $4,350 after reaching a near-year high earlier in the week [4]. The broader weakness extended to crypto-related stocks, with names like Coinbase and Robinhood experiencing initial declines before partial recoveries [4].

The recent events highlight the risks inherent in leveraged trading, particularly during periods of high volatility and macroeconomic uncertainty. As traders continue to navigate shifting regulatory landscapes and macroeconomic factors, market instability is expected to persist in the near term. Institutional buying of XRP during the selloff, as well as whale accumulation activity, has raised speculation about potential recovery phases [4]. Standard Chartered, for example, remains bullish on XRP, projecting it could reach $5.50 by the end of 2025, $8.00 in 2026, and up to $12.50 by 2028 [4]. These forecasts are tied to anticipated regulatory clarity and potential U.S. spot ETF inflows.

Source:

[1] XRP Liquidations Wipe $1.26M in Longs as 5.7% Price Drop Sparks Derivatives Shock (https://www.ainvest.com/news/xrp-news-today-xrp-liquidations-wipe-1-26m-longs-5-7-price-drop-sparks-derivatives-shock-2508/)

[2] XRP Rockets 32474% in Liquidation Imbalance in Hourly Bloodbath (https://u.today/xrp-rockets-32474-in-liquidation-imbalance-in-hourly-bloodbath)

[3] Bitcoin Falls Below $115000 as $500M+ Liquidations Trigger 11-Day Low (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-falls-115-000-500m-liquidations-trigger-11-day-2508/)

[4] Bitcoin, Ethereum Slip as Crypto Markets Pull Back After Hitting 2025 Highs (https://finance.yahoo.com/news/bitcoin-ethereum-slip-as-crypto-markets-pull-back-after-hitting-2025-highs-155818704.html)

[5] Altcoins at Liquidations Risk in Third Week of August (https://beincrypto.com/altcoins-at-liquidations-risk-august-third-week/)