XRP, Ether and Solana Hit by $369M Crypto Liquidation Wave. Source: EconoTimes
XRP, Ethereum and Solana came under heavy selling pressure as the cryptocurrency market suffered a $369.67 million derivatives liquidation wave, driven by rising oil prices, surging Treasury yields and growing expectations of a Federal Reserve rate hike.
More than 90,000 leveraged traders had positions liquidated, according to CoinGlass data. Long positions accounted for $301.84 million of the total, compared with $67.83 million in short liquidations, highlighting the severity of the market’s long squeeze.
Bitcoin recorded $111.83 million in liquidations as BTC dropped roughly 1.3%–1.8% toward the $77,200–$77,600 range. Ethereum declined about 2% to between $2,410 and $2,430, generating $95.39 million in liquidations. The largest individual liquidation was an $11.99 million Ethereum position on Binance.
Solana fell below the key $100 level, reaching $98.47 after declining as much as 3.5%. SOL liquidations totaled $27.09 million. XRP also retreated as traders absorbed a scheduled escrow unlock, despite approximately $170 million in XRP ETF inflows over the previous 11 days.
The broader crypto market capitalization slipped to roughly $2.59 trillion–$2.70 trillion. However, institutional demand showed signs of resilience. Bitcoin ETFs recorded $236.46 million in net outflows, while Ethereum, Solana and XRP investment products attracted inflows of $10.95 million, $10.19 million and $14.38 million, respectively.
Macroeconomic conditions were the primary catalyst behind the crypto sell-off. WTI crude oil climbed above $90–$92 per barrel, while the 10-year U.S. Treasury yield rose toward 4.78%–4.79%. The combination increased inflation concerns and pushed market expectations for a Federal Reserve rate hike on September 16 to 66%.
Meanwhile, the SEC proposed changes to blockchain transfer-agent regulations as U.S. lawmakers work on the Clarity Act. A September 17 SEC roundtable is also expected to include BlackRock, Nasdaq, NYSE and Robinhood in discussions surrounding 24/7 stock trading.
Despite widespread weakness, Filecoin gained around 14%–15%, while Uniswap advanced roughly 11%, bucking the broader crypto market downturn.