XRP futures market experiences cascade of liquidations totaling $1.6 billion

Since January 30, when Ripple’s token price began rising toward levels above $0.70, the combined liquidation volume of long and short positions in the XRP futures market exceeded $1.6 billion. The data come from bybt.

In the last 24 hours, as a result of growth and the subsequent collapse of XRP, positions were forcibly liquidated for $475 million (1.3 billion XRP).

Liquidation dynamics in XRP futures. Data: bybt.

Forbes experts interviewed saw in XRP’s sharp fluctuations the consequences of trading suspensions and the token’s delisting on American cryptocurrency exchanges. Some drew parallels with the GameStop stock pump.

“Liquidity shortages create opportunities for a globally coordinated attack,” said Jesse Proudman, head of the cryptocurrency hedge fund Strix Leviathan.

Earlier this month, Ripple representatives asked the U.S. Securities and Exchange Commission why the agency does not classify Bitcoin and Ethereum as securities. On the same day, XRP’s price rose by more than 60%.

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