XRP Futures Market Plunges $7 Million Amidst BlackRock ETF Hoax and Wild Price Fluctuations

XRP Futures Market Plunges

Last Updated on 4 weeks by cryptoevent

XRP futures traders grappled with a $7 million loss over the last 24 hours, triggered by erratic price movements following rumors of a BlackRock exchange-traded fund (ETF) filing for XRP in the U.S. The speculation, stemming from a tweet, propelled XRP prices from 65 cents to 73 cents within a 25-minute timeframe. The purported filing in the state of Delaware was initially reported as legitimate by reputable crypto news outlets, contributing to the surge in XRP prices.

Subsequently, it was revealed that the filing was a hoax, likely orchestrated by someone who completed a detailed form using the alias of a BlackRock executive, mimicking a genuine online filing. This revelation led to a rapid correction in XRP prices, reverting them to their previous levels. Unfortunately, leveraged traders had already entered significant positions during this price surge.

Data indicates that more than 75% of the total XRP liquidations were associated with long positions, where traders were betting on higher prices. This resulted in approximately $5 million in orders within the brief period when the market was influenced by the fake filing. Notably, these trades were predominantly executed on platforms such as Binance and Bybit, with individual positions ranging from a few thousand to over $200,000.

Liquidation, the forced closure of leveraged positions due to insufficient margin, occurred as traders failed to meet the margin requirements, leading to significant losses for those involved in the XRP futures market.