The cryptocurrency market experienced violent fluctuations within 24 hours, with over $1 billion in leveraged positions liquidated and major cryptocurrencies collectively declining. This adjustment stemmed from U.S. inflation data exceeding expectations, delaying rate cut expectations, while XRP, after its pullback, showed signs of institutional accumulation and technical breakthroughs, drawing attention to the $7 target.
The market fell broadly: Major cryptocurrencies faced pressure under $1 billion in liquidations.
In the past 24 hours, the crypto market experienced a chain reaction triggered by concentrated liquidation of leveraged positions, with $866 million in long positions wiped out, more than six times larger than the shorts liquidated. Specifically, Ethereum (ETH) had the largest liquidation scale at $348.9 million; Bitcoin (BTC) followed closely with $177.1 million liquidated; Solana (SOL), XRP, and Dogecoin (DOGE) had liquidations of $64.2 million, $58.8 million, and $35.8 million, respectively.
At the exchange level, Bybit became the epicenter of liquidations, with $421.9 million in losses, 92% of which came from over-leveraged long positions; Binance liquidated $249.9 million, and OKX liquidated $125.1 million, with OKX's largest single liquidation being a $6.25 million ETH-USDT perpetual contract.
The recent sell-off occurred just hours after Bitcoin hit an all-time high of $123,500, with major cryptocurrencies collectively retreating: Dogecoin led the decline at 9%, while SOL, XRP, and BNB fell between 3%-7%, indicating a rapid cooling of market risk appetite.
Macro pressures: Inflation data delays rate cut expectations.
The core driver of market volatility is the stronger-than-expected U.S. Producer Price Index (PPI), which intensified concerns about inflation stickiness and directly postponed rate cut expectations from the Federal Reserve. BTSE COO Jeff Mei analyzed that the unexpected inflation 'put the brakes on the recent surge in cryptocurrencies,' predicting that the market 'will oscillate within the current range until the Federal Reserve provides clearer guidance,' which may also impact the probability of a rate cut in September.
Nick Ruck, head of LVRG Research, pointed out that this sell-off highlights the sensitivity of cryptocurrencies to macro liquidity: 'Inflation data far exceeded expectations, delaying rate cut expectations, and traders are closely watching the early September labor data for policy clues. However, the core fundamentals of the bull market remain unchanged, and the market is expected to rebound.' Currently, the September Federal Reserve meeting has become a key turning point in monetary policy, with economic data and official statements being the market focus.
XRP stabilized after the drop: Signs of whale accumulation and expansion are emerging.
In the overall sell-off, XRP fell over 6%, dipping to a low of $3.00 before recovering to $3.12, with a 24-hour trading volume exceeding $11.1 billion and an hourly trading volume reaching 436.98 million units, setting a new quarterly high. Despite short-term pressure, on-chain data and technical signals are releasing positive indications.
On-chain data shows that large holders accumulated 320 million XRP in the past three days, worth approximately $1 billion, effectively alleviating short-term selling pressure. Analyst Crypto King believes that XRP has completed the accumulation and manipulation phase and is entering the 'expansion phase,' with the target price for this cycle set at $7.
From a technical perspective, XRP has formed a symmetrical triangle pattern on the 4-hour chart and is testing the support level converted from previous resistance after the pullback, aligning with healthy trend characteristics.
Additionally, XRP has accumulated a 66% increase since breaking out in mid-July, and the recent sideways consolidation is seen as a sign of energy accumulation. Ripple's Chief Technology Officer also reaffirmed XRP's supporting role in the financial system, reinforcing long-term market confidence.
Article Summary
Short-term macro pressures triggered a massive liquidation in the crypto market, but the decline in major cryptocurrencies did not alter the core fundamentals. For XRP, whale accumulation and technical patterns indicate that the adjustment may precede expansion, with the $7 target becoming a focal point for the market. Continuous tracking of Federal Reserve policy trends and economic data is necessary, as the resonance between macro factors and crypto's own logic will determine the rebound pace.