XRP Declines Amid $1.21B Crypto Liquidation and Ripple’s New Treasury Plan

Key Insights:

Over $1.21 billion in crypto leverage was liquidated, signaling mounting market stress and renewed volatility.

XRP’s trading volume rose 67% to $9.03 billion despite a 21% weekly decline, showing heavy repositioning by traders.

Ripple’s $1 billion treasury initiative highlights ongoing efforts to consolidate XRP holdings amid broader market turbulence.

The cryptocurrency market continued its slide early Friday, deepening losses from the week as global macro uncertainty and tightening liquidity weighed on risk sentiment. Traders remained cautious ahead of the upcoming Federal Reserve policy meeting later this month, leading to widespread losses across major digital assets.

According to data from CoinGlass, the sell-off triggered significant liquidations worth approximately $1.21 billion in the past 24 hours. Long positions accounted for $943.96 million of the total, while short traders saw $261 million liquidated. The heavy unwinding of leveraged bets underscored heightened volatility and a broad retreat from risk assets following renewed market jitters.

Bitcoin and Major Altcoins Reverse Weekly Gains

Bitcoin’s price dropped below the $105,000 mark, reversing its midweek recovery. Most major cryptocurrencies mirrored the downturn, including Ethereum and Shiba Inu. XRP also joined the decline, trading down 7.31% in the past 24 hours at $2.22, reflecting a weekly loss of 21%. Despite the decline, trading volumes for XRP surged 67% to $9.03 billion, suggesting active repositioning among market participants.

Market participants shifted their focus to the Federal Reserve’s October Federal Open Market Committee meeting scheduled for October 28–29. With the ongoing government shutdown entering its third week, investor attention remained on upcoming comments from Fed officials. Many traders expect these communications to offer direction on future monetary tightening, which continues to pressure liquidity-sensitive assets like cryptocurrencies.

Ripple’s $1B Digital Asset Treasury Initiative

In a notable development, Bloomberg reported that Ripple is seeking to raise at least $1 billion to establish a new digital-asset treasury aimed at accumulating XRP. The planned structure, referred to as a digital-asset treasury (DAT), would be one of the largest XRP-focused investment efforts to date. Ripple also confirmed its agreement to acquire GTreasury, a treasury management software provider, in a deal valued at $1 billion.

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