XRP News Today: Trump's Tariff Triggers XRP's 56% Plunge and $19B Crypto Liquidation

The XRP price plunge in late October 2025 has been labeled a "black swan" event by analysts, with the token shedding 56% of its value in a single day amid cascading market panic. The collapse, triggered by U.S. President Donald Trump's surprise announcement of a 100% tariff on Chinese imports, wiped $700 million in XRP positions and sent shockwaves through the broader crypto market. Over $19 billion in crypto assets were liquidated globally, marking the largest single-day wipeout in the industry's history.

A "black swan" event, as defined by Nassim Nicholas Taleb, refers to an unpredictable occurrence with catastrophic consequences, often rationalized in hindsight. In crypto, such events typically stem from regulatory crackdowns, systemic exchange failures, or macroeconomic shocks. The XRP crash fits this mold, with Trump's tariff threat reigniting fears of a U.S.-China trade war and triggering a global "risk-off" selloff. XRP's price nosedived from $2.83 to $1.25 within hours before recovering to $2.40, though the damage to investor confidence was profound.

The XRP turmoil is part of a broader pattern of crypto market volatility. Historical precedents include the 2020 "Bitcoin Black Thursday" crash, the 2022 Terra-LUNA collapse, and the FTX implosion-all of which erased billions and exposed systemic vulnerabilities. The recent XRP drop, however, was exacerbated by leverage-heavy trading positions. CoinGlass data revealed that $615 million in XRP longs were liquidated as traders scrambled to cut losses.

The Trump-driven selloff also highlighted the fragility of leveraged positions. Over 1.6 million traders were liquidated globally, with Ethereum and Bitcoin suffering similar fates. Bitcoin fell from above $125,000 to $102,000 intraday, while Ethereum plunged 18%. "This was a black swan event," said David Jeong, CEO of Tread.fi, noting that institutions were unprepared for the scale of volatility.

Experts warn that the XRP crash underscores the need for robust risk management. Den Manu, CMO of Funtico, emphasized the importance of diversification, self-custody, and regulatory clarity in mitigating future shocks. "Investors must treat crypto as part of a diversified portfolio, not a speculative gamble," he added. Meanwhile, Peter Brandt, a veteran trader, profited from the chaos by shorting XRP to its $1.25 low, though critics argue his success was more luck than strategy.

Despite the carnage, some analysts see a path to recovery. Patrick Riley, a crypto investor, predicts XRP could form its "most bullish weekly candle ever" if it closes above $3.115 by Sunday. The token's rapid rebound from $1.25 to $2.40 in days suggests resilience, though skepticism remains. "The bull market structure is intact for Bitcoin," one analyst noted, pointing to its recovery above the $100,000 support level.

The XRP crash also reignited debates over the Ripple-SEC legal battle, which remains unresolved. A potential unfavorable ruling in July 2025 could further destabilize XRP's market position, particularly for projects relying on similar legal interpretations. For now, the focus remains on Trump's trade policies and their ripple effects. If tensions escalate, crypto's recovery could be delayed; if resolved, a relief rally may follow.

[1] Crypto Black Swan Events: Potential Threats in 2025 (https://beincrypto.com/black-swan-events-threaten-crypto-stability-2025/)

[2] Black Swan Event Explained: Why They Create the Best Buying ... (https://www.gate.com/crypto-wiki/article/black-swan-events-explained)

[3] Expert Says 'XRP Black Swan' Made History as XRP Loses 1.27 Dollars (https://article.wn.com/view-lemonde/2025/10/11/Expert_Says_XRP_Black_Swan_Made_History_as_XRP_Loses_127_Dol/)

[4] Crypto Liquidation hits $19B as Trump's China Tariff ... (https://coinpedia.org/news/crypto-liquidation-hits-19b-as-trumps-china-tariff-triggers-market-crash/)

[5] Why Is Crypto Down: Bitcoin (BTC) Down 10%, ETH, XRP, SOL in (https://www.coindesk.com/markets/2025/10/10/bitcoin-crashes-below-usd110k-cryptos-in-freefall-on-further-trump-tariff-on-china)

[6] Trump Crashes Crypto Markets With 100% Tariff On ... (https://beincrypto.com/trump-china-tariff-triggers-200-billion-crypto-crash/)

[7] Crypto's $19 Billion Liquidation Explained: Here's What Happened (https://www.ccn.com/education/crypto/cryptos-19-billion-liquidation-explained-trump-china-tariff-leverage-crash/)

[8] XRP Crashes 56% As $700M Liquidated: What's Next? (https://coinedition.com/how-xrp-lost-half-its-value-and-still-bounced-back-within-hours/)

[9] Why Bitcoin Price, Ethereum, XRP, Solana, Other ... (https://www.thecoinrepublic.com/2025/10/10/why-bitcoin-price-ethereum-xrp-solana-other-altcoins-are-suddenly-falling/)