Forced liquidations across crypto markets crossed $750 million in a single session as Bitcoin, Ethereum, and XRP surged to new local peaks, according to CoinGecko data. Traders who had bet against the rally got squeezed out when prices moved up fast enough to trigger their margin calls.
That cascade of forced selling added fuel to the move, pushing prices even higher in a feedback loop.
Bitcoin and Ethereum led the charge, each breaking through local resistance levels that had held for weeks. When prices clear those levels, short positions get liquidated automatically, which means the exchange sells the trader's collateral to cover the loss. That selling pressure on the short side becomes buying pressure on the long side, and the move accelerates.
XRP joined the rally with particular force, driven by a surge in ETF trading volume that hit $5.81B, according to CoinPedia research. Institutional investors poured money into XRP-focused exchange-traded products as demand picked up around the CLARITY Act, a proposed law that would give the SEC clearer authority over digital assets.
The act's progress through Congress created a catalyst that pulled large buyers off the sidelines.
But the Fed's rate decision added a layer of uncertainty that should have scared buyers off. Higher rates typically hurt risk assets like crypto because they make safe bonds more attractive by comparison. Despite that headwind, XRP ETF demand held firm through the vote fallout, suggesting institutions see the regulatory clarity as worth the macro risk.
CoinPedia's analysis outlines a scenario where XRP's market cap reaches $10 trillion, which would put the token in striking distance of Ethereum's valuation. At that level, XRP would flip ETH and become the second-largest cryptocurrency by market cap, according to CoinPedia's forecast. The math depends on sustained ETF inflows and a favorable outcome from the CLARITY Act vote.
That outcome is not guaranteed. Coinspeaker reported that some ETF inflows softened after the initial vote push, and the broader market remains sensitive to every Fed signal. Still, the $750M in liquidations tells you the short side is getting exhausted, and that tends to happen right before a trend extends further.
Reader desk
Discuss the signal
Verified readers · 2 comments per post / 24h
No comments yet. Be the first verified reader to add context.