Українська
Русский
English
XRP Price Falls to Yearly Low of $1.188 as Traders Face $14 Million in Losses Amid Liquidation Wave
On 3 June, $XRP reached a new yearly low of $1.188 amid a broader cryptocurrency sell-off, losing nearly 34% over the year before stabilising slightly below $1.22.
Key Takeaways
- On 3 June, $XRP reached a new yearly low of $1.188 amid escalating military confrontation between the United States and Iran.
- The bearish market triggered $14.06 million in long-position liquidations, completely overshadowing the news of Ripple’s partnership with Mastercard.
- Critics warn that future Strategy liquidations could affect the market in a similar way.
$XRP Reached a New Year-to-Date Low
On 3 June, $XRP fell below the $1.20 mark amid a market-wide sell-off, during which Bitcoin also reached its lowest level since early February. Market data shows that $XRP briefly dropped to $1.188 — a new year-to-date low for the digital asset, which was trading at twice that price on 6 January. With this decline, $XRP continued a trend that has seen it lose 9% of its value over the past seven days.
Although it quickly recovered shortly afterwards, the cryptocurrency eventually lost momentum soon after breaking above $1.24, then gradually returned to the $1.21 level. At the time of writing, at 15:00 Eastern Standard Time (EST), $XRP was trading slightly below $1.22, leading to a modest decline in market capitalisation to $75.3 billion. The price movement also pushed $XRP’s 30-day losses up to 13%, while year-to-date losses rose to nearly 34%.
Like much of the broader cryptocurrency market, $XRP declined under a wave of bearish sentiment caused by the escalation of military clashes between the US Navy and Iranian forces. Although officials in Washington described the strikes on Iranian facilities solely as defensive manoeuvres, market observers and geopolitical analysts fear that both sides are sleepwalking into another full-scale bombing confrontation.
In addition to geopolitical tensions in the Middle East, $XRP had already been shaken by Strategy’s unexpected announcement that it had liquidated 32 Bitcoin to fund dividend payments to preferred shareholders. Although staunch supporters of the Bitcoin treasury pioneer dismissed the liquidation as standard capital management, a 3 June post on X by Strategy Executive Chairman Michael Saylor hinted that the company would resume buying Bitcoin.
However, critics warn that this sale, as well as future liquidations to maintain dividend obligations, could undermine Strategy’s core concept as a permanent Bitcoin reserve. The impact of the sale proved so strong that it completely overshadowed other favourable macroeconomic factors, such as Mastercard’s announcement that it would integrate settlement support for Ripple’s RLUSD stablecoin.
Meanwhile, Wednesday’s decline in $XRP triggered just over $14.06 million in long-position liquidations, compared with $1.07 million in short-position liquidations.
See also: "Bitcoin Falls to a Four-Month Low Amid Rising Tensions Around Iran"
