The cryptocurrency market kicked off the week with a broad sell-off, as Bitcoin (BTC) briefly dropped to $111,986, its lowest level since September 10. Ethereum (ETH) fell to $4,059, a 30-day low, before rebounding to just under $4,200. XRP plunged to $2.69, a low not seen since July 11, before stabilizing around $2.78.
XRP Loses Third Place to USDT as BNB Hits All-Time High
The decline pushed XRP's market capitalization to approximately $167 billion, allowing stablecoin USDT, with a market cap exceeding $172 billion, to overtake it and become the third-largest cryptocurrency. This marks the first time USDT has surpassed XRP in market cap, reflecting heightened risk aversion. Meanwhile, Binance Coin (BNB) briefly hit a new all-time high of $1,072 before retreating, posting a 5.5% drop in 24 hours to around $1,009, signaling increased market divergence.
Altcoins Suffer Heavily, Total Market Cap Falls Below $4T
Other major altcoins experienced even steeper declines: Dogecoin (DOGE) fell 11.4%, Cardano (ADA) dropped 9.8%, and Chainlink (LINK) slid 10.5%. Solana (SOL), Polygon (MATIC), and other large-cap tokens posted daily losses between 5% and 10%. As a result, the total cryptocurrency market capitalization slipped to just under $4 trillion, erasing hundreds of billions of dollars from the previous day.
Massive Liquidations Totaling $1.7B Spark Manipulation Allegations
According to Coinglass data, over the past 24 hours, $1.7 billion in leveraged positions were liquidated, affecting approximately 406,202 traders. Long liquidations accounted for the vast majority at $1.62 billion. By asset, Ethereum led with $495.1 million in liquidations, followed by Bitcoin at $283.86 million. Solana ($95.38M), XRP ($78.97M), and Dogecoin ($62.20M) also saw significant forced closures. The cascade of long squeezes exacerbated the downward spiral.
Critics Point Finger at Exchanges
The sudden crash reignited accusations of market manipulation. Crypto commentator Marty Party posted on X: “Exchanges made $631 million from this perpetual contract market flush. Buy your own platform token with those profits. It's their game until regulators ban it.” The statement quickly gained traction, fueling renewed debate about potential 'stop-hunting' tactics by centralized exchanges.
At the time of writing, markets are attempting to stabilize, with Bitcoin and Ethereum recovering slightly, while XRP remains under pressure near $2.78. Investors are advised to manage leverage cautiously and watch for further developments.