Mass Liquidation Wave: $2 Billion Withdrawn from XRP, ETH, and BTC

Over $2 billion recently exited major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and XRP, triggering a dramatic wave of sell-offs and liquidations across spot and derivatives markets.

Key causes behind this crash:

A major "whale" reportedly sold nearly $2 billion worth of Bitcoin, setting off a chain reaction market-wide.

Crypto-backed financial products (ETFs/ETPs), especially in the United States, saw massive outflows—about $1.97 billion in one week, accounting for 97% of global ETP outflows.

The panic spread in a context of low trading volumes, making the market more vulnerable to large sell orders.

Impact on XRP, ETH, and BTC:

XRP, ETH, and BTC suffered steep drops, with both XRP and ETH falling by about 6% in just 24 hours.

More than $1.7 billion was liquidated in 24 hours, with ETH taking the hardest hit, followed by XRP and other altcoins.

Bitcoin alone lost $1.38 billion through investment products, compared to $689 million for Ethereum and $15 million for XRP.

Investor response:

Outflows were mainly from U.S. products, while countries like Germany saw some investors trying to capitalize on the dip.

Over 400,000 traders—often using high leverage—were liquidated in just one day.

Key takeaway:

This mass liquidation wave reflects broader market uncertainty around regulations and global macroeconomic conditions.

While severe, such events are common in the crypto cycle and, for some, present long-term buying opportunities.

Source: DailyCoin