Cryptocurrency Market Bloodbath: XRP and Cardano (ADA) Experience Staggering Losses, Leading to a $1.2 Billion Liquidation

In a shocking turn of events for the cryptocurrency market, major altcoins such as XRP and Cardano (ADA) experienced staggering losses, leading to a $1.2 billion liquidation

Major altcoins, including XRP and Cardano (ADA), suffered staggering losses on Friday, leading to a $1.2 billion liquidation bloodbath.

The massive liquidation

Over $1.2 billion worth of crypto was liquidated in just 24 hours, according to data from CoinGlass. Unsurprisingly, long positions accounted for the majority of the wipeout, totaling a staggering $1.07 billion. The largest single liquidation order occurred on Binance, where one unfortunate trader lost nearly $16 million.

The state of major altcoins

The impact of this financial turmoil was not limited to Bitcoin. Major altcoins also bore the brunt, with the Ripple-linked XRP token suffering a dramatic 10% plunge. Dogecoin (DOGE) and Cardano (ADA) also recorded double-digit losses, with a drop of 19.4% and 15.7% respectively.

The market reaction and external factors

The cryptocurrency market took a bearish turn following the US Federal Reserve's announcement that it would reduce easing in 2025 after implementing a “hawkish” rate cut. This move has led to an expectation of just two rate cuts in the coming year, dealing a significant blow to risk assets.

This financial pressure was not exclusive to the crypto market; US equities also came under strain, with the Dow recently recording its longest losing streak in 50 years.

The recent events have underscored the volatile nature of the crypto market and the potential risks involved. With significant losses across major altcoins, the coming days will be crucial in determining the market’s resilience and potential for recovery.