The cryptocurrency market recorded a sharp downturn today, with total market capitalization dropping by 2.93 percent to $3.21 trillion. At the same time, trading volume surged by 39.75 percent to $144.4 billion, highlighting intense selling pressure and increased market activity.
One of the key triggers behind the decline was a political confrontation involving U.S. President Donald Trump and Elon Musk. Their public disagreement over major policy issues brought confusion, unsettling investor sentiment, and contributed to the broader market sell-off.
Politics brought instability, and liquidations caused significant harm as a large number of trading positions were automatically closed when cryptoasset prices decreased. Liquidations during the last 24 hours reached more than $1 billion, and most of those were for positions held for over one month.
Short trades were worth just around $100 million, demonstrating how great the overall bullish position was.
A total of $341.76 million was liquidated from Bitcoin, and Ethereum led the liquidations of $285.99 million. These liquidations demonstrate the results of people needing to exit their positions amid the market collapse.
Among the top exchanges, Bybit reported a volume of $352 million and Binance $248 million, and over 89 percent of the total was in long positions.
Also Read: Analyst Says XRP to $10 is Just the Beginning, Here’s Where the Price is Heading
XRP Declines Amid Liquidations and Political Unrest
XRP was among the tokens affected by the market turbulence. Despite a stable Fear and Greed Index reading of 46, many traders continued to exit positions. Political instability appeared to influence sentiment within the XRP community, fueling risk-off behaviour.
Investors also remain cautious ahead of the U.S. non-farm payroll and unemployment data. Changes in these indicators may alter expectations about Federal Reserve actions, leading to lower interest in digital assets.
According to technical analysis, the market outlook became weaker when the total crypto market cap dropped below the 9-day moving average of $3.23 trillion. With a current market cap of $3.17 trillion, failing to regain previous levels could drive the market down to $3 trillion.
XRP’s price reflected these pressures, falling from around $2.20 to a low of approximately $2.05 before slightly recovering to $2.14 by midday.
Political unrest, increased selling, and economic concerns contributed to the crypto market’s fall. As key support levels break, investor focus turns to financial data that could determine the next major move.
Also Read: XRP Moment is Near as Analyst Points to July 14 as Important Date to Watch – Here’s Why
