hodler

5 Feb 2026, 18:48

Heads Up! Bitcoin Enters Capitulation Mode, Trades In a ‘Phase That Rewards Discipline Over Prediction’

Bitcoin (BTC) has entered a key capitulation phase, analysts argue. However, positioning, discipline, and risk management now matter much more than price predictions. Additionally, BTC is now moving through a sustained reset rather than a brief correction. This may last for months to come, analysts note. That said, amid macro uncertainty, institutional outflows, declining liquidity, compressed volatility, and dampened risk appetite, Bitcoin as a barometer for broader capital sentiment is on the rise. At the time of writing (Thursday, 14:00 UTC), BTC was trading at $69,313, having dropped 7.9% in a day. TLDR: The crypto market is now in full capitulation mode; BTC is no longer in short-term correction; It needs to defend the $70,000 threshold; The $55,700-$58,200 zone is on the table; Bitcoin OGs who are doing most of the selling; Macro uncertainty and risk sentiment are currently driving flows; If liquidity improves and key support holds, Bitcoin could stabilise; BTC serves as a barometer of whether capital is willing to re-engage with higher-risk assets; The crypto market is unlikely to decouple from macro-driven risk pricing. ‘Bitcoin Capitulation’ Nic Puckrin, investment analyst and co-founder of Coin Bureau , commented on BTC’s recent and major pullback, particularly its fall to the $70,000 level. “As Bitcoin continues its slide toward the psychological barrier of $70,000, it’s clear the crypto market is now in full capitulation mode,” he said. Per Puckrin, based on data provided by previous cycles, the current situation is “no longer a short-term correction, but rather a transition from distribution to reset.” These typically take months, not weeks, he warns. The analyst now expects BTC to fight to defend the $70,000 threshold. If it breaks below, it could proceed lower towards its bear market low around the $55,700-$58,200 territory. Source: TradingView Meanwhile, Puckrin also noted that the market is slipping as Bitcoin whales are going for large-scale selling. At the same time, institutional outflows are increasing. Yet, while Bitcoin exchange-traded funds (ETFs) are seeing negative flows, the majority of ETF holders are sitting on paper losses. It is Bitcoin OGs who are doing most of the selling, Puckrin says, citing Bloomberg data. “This is Bitcoin’s institutionalisation in action,” the analyst concludes. ‘Discipline Over Prediction’ Nic Roberts-Huntley, CEO and co-founder of Blueprint Finance , argues that Bitcoin’s latest drop doesn’t suggest a fundamental breakdown in demand. Instead, it reflects a broader risk-off sentiment across markets. The number one coin has struggled to hold key technical levels. Liquidity dried up and forced liquidations intensified, the CEO said. Additionally, macro uncertainty and risk sentiment are currently driving flows, as evidenced by the demand for precious metals and other traditional hedges. “That said, if macro clarity returns, liquidity improves, and key support holds, Bitcoin could stabilise and set the stage for a recovery rally later in the cycle,” Roberts-Huntley wrote. “In the near term, traders and investors should be watching whether BTC can defend the mid-$70,000s and reclaim the $78,000–$80,000 zone.” These are key levels to monitor. A lot of stops were likely just taken, and a lot of people are now flipping bearish because of the lower low IMO this *could* lead to a short-term bounce I closed more shorts and will leave the rest — no new positions until more clarity and no hedge long yet either — Tony Severino, CMT (@TonySeverinoCMT) February 3, 2026 Meanwhile, Tony Severino, market analyst at YouHodler , wrote that the common theme across markets this week “is not direction, but compression.” Bitcoin is “locked in one of the tightest volatility regimes in its history.” At the same time, currency volatility is rising even as the dollar softens, and metals are holding extreme levels without breaking. “These conditions tend to frustrate short-term participants, but they also signal that markets are working off time rather than trend,” Severino wrote. “For crypto investors, this is a phase that rewards discipline over prediction.” He argued that macro forces are shifting, while technical structures across assets suggest that resolution is nearing. Timing, though, is still unclear. “When volatility expands from these conditions, history suggests the move is unlikely to be subtle. Until then, patience, positioning, and risk management remain the real edge,” the analyst concluded. You may also like: Nic Roberts-Huntley on DeFi’s Next Frontier: Institutional Yield, Crypto Vaults, and the Maturation of Digital Assets | Ep. 509 Bitcoin (BTC) has entered a key capitulation phase, analysts argue. However, positioning, discipline, and risk management now matter much more than price predictions.Additionally, BTC is now moving through a sustained reset rather than a brief correction. This may last for months to come, analysts note.That said, amid macro uncertainty, institutional outflows, declining liquidity, compressed volatility, and dampened risk appetite, Bitcoin as a barometer for broader capital sentiment is... ‘Bitcoin Serves as a Barometer’ Bitunix analysts identified renewed tensions in the Middle East, as well as the AI -sector-fuelled “repricing-driven selloff” in technology stocks, as major factors affecting markets. When it comes to BTC specifically, it retraced 45% from last year’s high of $126,080. The overall market pullback suggests that “the excess risk premium accumulated earlier has been systematically squeezed out.” Subsequently, this has led to market sensitivity to liquidity conditions, as well as elevated uncertainty. Additionally, “Bitcoin is increasingly viewed as a result indicator of whether markets are willing to reabsorb risk,” the analysts say. In other words, BTC “serves as a barometer of whether capital is willing to re-engage with higher-risk assets.” If the cryptocurrency manages to reclaim $75,000 and remain structurally stable there amid mounting macro uncertainty, it would imply that the market’s pricing of systemic liquidity risk remains restrained. However, a sustained break below $75,000 would indicate that risk appetite has yet to recover. #Bitcoin now trades ~20% below its estimated $87K production cost as miner profitability hits a 14-month low. #Crypto $BTC #Mining https://t.co/kBh1sj8NDD — Cryptonews.com (@cryptonews) February 5, 2026 That said, “as long as global capital remains defensively positioned and structural deleveraging is incomplete, the crypto market is unlikely to decouple from macro-driven risk pricing,” the analysts argue. Market participants should continue to monitor geopolitical tensions and assess the risk of escalation into conflict. Another factor is that the technology sector repricing could potentially trigger a broader balance-sheet contraction across asset classes. You may also like: (LIVE) Crypto News Today: Latest Updates for February 5, 2026 The cryptocurrency market is facing intense selling pressure this Thursday, with Bitcoin (BTC) and Ethereum (ETH) leading a broad-based retreat that has sent total market capitalization sliding over 6%. Bitcoin recently dipped below the psychological $72,000 mark, falling nearly 5%, while Ethereum has struggled to maintain its footing above $2,100 following a 4.66% drop. The decline is most acute in the CeFi sector, which tumbled 6.05% behind heavy losses from Binance Coin and Nexo. Despite... The post Heads Up! Bitcoin Enters Capitulation Mode, Trades In a ‘Phase That Rewards Discipline Over Prediction’ appeared first on Cryptonews .

5 Feb 2026, 18:45

Crypto Futures Liquidated: Staggering $112 Million Hourly Wipeout Shakes Markets

BitcoinWorld Crypto Futures Liquidated: Staggering $112 Million Hourly Wipeout Shakes Markets Global cryptocurrency markets experienced a severe tremor on March 21, 2025, as a staggering $112 million in futures contracts faced liquidation within a single hour. This intense burst of forced selling, primarily across major exchanges like Binance, Bybit, and OKX, underscores the extreme volatility and high-leverage risks embedded in today’s digital asset ecosystem. Consequently, the event has triggered widespread analysis and renewed calls for prudent risk management among traders. Crypto Futures Liquidated: Anatomy of a $112 Million Hour Liquidation events represent a critical mechanism in derivatives trading. Exchanges automatically close leveraged positions when a trader’s collateral falls below a maintenance threshold. This recent $112 million liquidation wave likely stemmed from a sharp, unexpected price movement against a large number of leveraged bets. Data from tracking platforms like Coinglass confirms the scale, with long positions—bets on rising prices—bearing the brunt of the losses during this specific episode. For context, the total futures liquidated over the preceding 24 hours reached a colossal $1.428 billion, highlighting a period of sustained market stress. Market analysts immediately scrutinized order book data and funding rates. Typically, a cascade of liquidations can create a feedback loop: forced selling drives prices down further, triggering more liquidations. This phenomenon, often called a “liquidation cascade,” amplifies market moves. The concentration of these liquidations on a few major platforms points to the centralized nature of current crypto derivatives volume. Furthermore, the event serves as a stark reminder of the inherent risks associated with high leverage, which can magnify gains but also lead to rapid, total capital loss. Understanding Derivatives Market Mechanics To grasp the significance of this event, one must understand the mechanics of cryptocurrency futures. Unlike spot trading, futures contracts allow traders to speculate on an asset’s future price without owning it. Traders use leverage, borrowing capital to control larger positions. While this can increase potential returns, it also drastically increases risk. Exchanges set liquidation prices to protect themselves from losses if a trader’s position turns negative. When the market price hits this liquidation level, the exchange forcibly closes the position, selling the collateral to cover the debt. The table below illustrates common leverage tiers and their impact on liquidation risk: Leverage Level Position Size Amplification Approximate Price Move to Trigger Liquidation* 5x 5x Capital ~15-20% 10x 10x Capital ~7-10% 25x 25x Capital ~3-4% 100x 100x Capital ~0.7-1% *Varies by exchange and contract. This demonstrates how higher leverage requires smaller adverse moves to trigger liquidation. Therefore, a market swing of just a few percentage points can wipe out highly leveraged positions. This structural reality directly fueled the scale of the recent $112 million liquidation hour. Market participants often monitor aggregate liquidation levels as a sentiment gauge. Elevated levels suggest crowded leverage and potential vulnerability to sharp corrections. Expert Insight on Systemic Risk and Market Health Dr. Anya Sharma, a financial technology professor and former exchange risk architect, provides crucial context. “A single-hour liquidation figure of $112 million, while significant, must be viewed relative to total open interest,” she explains. “Open interest across crypto futures frequently exceeds $50 billion. Thus, this event represented a small percentage of the total market. However, its psychological impact and its role as a volatility accelerant are profound.” Dr. Sharma emphasizes the importance of the liquidation process itself. “Efficient and orderly liquidations are vital for market integrity. The fact that major exchanges handled this volume without apparent technical failure is a testament to improved infrastructure since the 2021-2022 cycles.” She also notes the role of automated trading bots and algorithms, which can both contribute to and mitigate cascade effects depending on their programming. Historical precedents, like the March 2020 “Black Thursday” or the LUNA collapse in May 2022, saw liquidation volumes in the billions, dwarfing this event but following similar mechanistic patterns. Broader Market Impact and Trader Psychology The immediate impact of such a liquidation wave extends beyond the traders directly affected. Firstly, it injects significant sell-side pressure into the spot market as exchanges unwind positions. This can create short-term buying opportunities for other market participants but also fosters fear. Secondly, it leads to a rapid increase in market volatility, as measured by metrics like the Bitcoin Volatility Index (BVOL). High volatility can deter institutional participation and complicate hedging strategies for corporate treasuries. From a behavioral finance perspective, these events test market psychology. Key reactions often include: Risk-Off Sentiment: Traders may universally reduce leverage, lowering overall market risk but also liquidity. Funding Rate Adjustments: Perpetual futures funding rates often turn deeply negative after long liquidations, paying shorts to incentivize rebalancing. Increased Scrutiny: Regulatory bodies and media focus intensifies on consumer protection in leveraged crypto products. Moreover, the $1.428 billion 24-hour liquidation total indicates this was not an isolated spike. It suggests a prolonged period of deleveraging and position adjustment across the market. This often occurs during transitions between market trends or in response to major macroeconomic news, such as interest rate decisions or geopolitical events affecting risk assets. Conclusion The liquidation of $112 million in crypto futures within one hour serves as a powerful case study in market dynamics and risk. It highlights the double-edged sword of leverage in cryptocurrency trading. While derivatives markets provide essential tools for hedging and price discovery, they also concentrate risk and can exacerbate volatility. For the ecosystem to mature, continued education on risk management, transparent exchange mechanisms, and perhaps more sophisticated risk-off tools are imperative. Ultimately, events like this reinforce the need for traders to employ prudent strategies, maintain healthy margin levels, and understand that in highly leveraged environments, capital preservation must be the foremost priority. FAQs Q1: What does “futures liquidated” mean? A1: It means an exchange forcibly closed a leveraged futures position because the trader’s collateral value fell below the required maintenance level. The exchange sells the collateral to prevent loss on the borrowed funds. Q2: Why do liquidations happen so quickly in crypto? A2: Cryptocurrency markets operate 24/7 with high volatility and allow extreme leverage (up to 100x or more on some platforms). A small price move against a highly leveraged position can instantly trigger a liquidation. Q3: Who benefits from market liquidations? A3: While painful for liquidated traders, other market participants can benefit. Counterparties on the winning side of trades profit, and arbitrageurs may capitalize on price dislocations. Some traders also view large liquidations as a potential market bottom signal. Q4: How can traders avoid being liquidated? A4: Key strategies include using lower leverage, maintaining ample collateral (over-collateralization), setting stop-loss orders at safe levels, and actively monitoring positions, especially during periods of high expected volatility. Q5: Is a $112 million liquidation a large event for crypto markets? A5: It is a significant and notable event that indicates heightened volatility and risk. However, relative to the total crypto derivatives market size (often tens of billions in open interest), it is a contained correction rather than a systemic crisis, unlike multi-billion dollar liquidation events seen in past bear markets. This post Crypto Futures Liquidated: Staggering $112 Million Hourly Wipeout Shakes Markets first appeared on BitcoinWorld .

5 Feb 2026, 18:43

Evening digest: Bitcoin crashes, weight-loss drug price war, Saudia’s fleet expansion

Markets are being jolted across asset classes as risk appetite frays. Bitcoin has cracked a key support level, deepening fears the crypto sell-off has further to run. In equities, Hims & Hers has ignited a price war in weight-loss drugs, rattling Big Pharma. Commodities are back under pressure as gold and silver slide sharply after a volatile week. Meanwhile, aviation heats up as Saudia weighs a historic aircraft order that could reshape global jet markets. Bitcoin’s $67K breakdown Bitcoin has capitulated below the critical $67,000 support , and technical analysts warn the bottom isn’t in yet. The sell-off is being driven by a “perfect storm” of macro headwinds as Treasury Secretary Bessent’s explicit rejection of a crypto bailout, relentless ETF outflows, and over $16 billion in forced leverage liquidations. Chart watchers are now eyeing the $62,000–$65,000 zone as the next logical floor. With the 200-week moving average under siege and sentiment firmly in “extreme fear” territory, the market lacks the immediate buy-side liquidity to stage a reversal, suggesting this correction has more room to run. Hims & Hers starts a weight-loss price war Hims & Hers just nuked the GLP-1 pricing model. By launching a compounded oral semaglutide pill for $49 a month, they aren’t just undercutting Novo Nordisk; they are brazenly challenging Big Pharma’s moat. This is a direct shot at Novo’s newly launched oral Wegovy, which runs nearly $200 even with discounts. Investors see the threat: Novo shares slumped 6% immediately. While Novo’s CEO dismisses the copycat as a “waste,” Hims is betting that consumers, tired of navigating insurance hurdles and shortages, will flock to a cash-pay option that costs less than a gym membership. The regulatory fight over “compounded” drugs is about to get very ugly. Commodities face another sell-off Gold’s recovery attempt hit a wall on Thursday , with prices sliding back into the red as volatility continues to grip the precious metals market. After briefly reclaiming the $5,000 level, spot gold gave up those gains to trade down 0.8% at roughly $4,926 an ounce, finding itself unable to sustain momentum against a wave of profit-taking. Futures for April delivery mirrored the weakness, hovering near $4,942 after a wild session that saw prices swing by over $200.​ Silver, however, bore the brunt of the damage. The metal capitulated in a violent 13% drop to around $73.60 an ounce, effectively wiping out the relief rally seen earlier in the week. Traders are now watching the $4,700–$4,800 zone for gold as a critical line in the sand; failing to hold that floor could signal that the correction has further to run. Saudia eyes historic fleet expansion Saudia Airlines is negotiating a potential blockbuster order for at least 150 jets, pitting Airbus against Boeing in a winner-take-all contest. The airline is shopping for both narrowbody and widebody aircraft to modernize its fleet and support Vision 2030’s aggressive tourism targets. This deal would eclipse its previous record-breaking purchase of 105 Airbus jets in 2024. While talks are early and fluid, the scale is massive, potentially reshaping order books for years. Meanwhile, Riyadh Air is also hunting for 50 widebodies, signalling a coordinated Saudi push to dominate regional skies. The post Evening digest: Bitcoin crashes, weight-loss drug price war, Saudia’s fleet expansion appeared first on Invezz

5 Feb 2026, 18:40

Tom Lee Dismisses Suggestions BitMine’s $6 Billion Ether Treasury Paper Loss Will Suppress ETH Price

Tom Lee responded to criticism that the massive unrealized losses from its aggressive Ether bet will weigh on ETH prices.

5 Feb 2026, 18:40

Bitcoin Price Plummets Below $66,000: Analyzing the Sudden Market Shift

BitcoinWorld Bitcoin Price Plummets Below $66,000: Analyzing the Sudden Market Shift Global cryptocurrency markets witnessed a significant correction on April 2, 2025, as the flagship digital asset, Bitcoin (BTC), broke below the crucial $66,000 psychological support level. According to real-time data from Bitcoin World market monitoring, BTC was trading at $65,927.23 on the Binance USDT perpetual futures market during the Asian trading session. This move represents a notable pullback from recent highs and has triggered widespread analysis among traders and institutional investors regarding the near-term trajectory for digital assets. The decline underscores the inherent volatility of the cryptocurrency sector, even as adoption continues to grow globally. Bitcoin Price Drop: Immediate Market Context and Data The descent below $66,000 did not occur in isolation. Market data reveals a confluence of technical and on-chain factors preceding the move. Firstly, trading volume across major exchanges spiked by approximately 35% in the 24 hours leading to the drop, indicating heightened selling pressure. Furthermore, the Bitcoin Fear and Greed Index, a popular sentiment gauge, shifted from ‘Greed’ to ‘Neutral’ territory just prior to the decline. On-chain analytics firm Glassnode reported an increase in the movement of older coins, often a signal of long-term holders redistributing assets. Consequently, this price action tests a key support zone that has held firm for several weeks. Comparing Current Volatility to Historical Patterns Bitcoin’s history is characterized by sharp corrections within broader bull trends. For instance, the 2021 cycle saw multiple drawdowns exceeding 20% that ultimately preceded new all-time highs. The current ~10% pullback from recent peaks remains within historical norms for Bitcoin’s volatility profile. Analysts often reference the 200-week moving average and the Realized Price as fundamental health indicators. Currently, Bitcoin’s price remains well above these long-term metrics, suggesting the core bullish market structure may still be intact despite short-term weakness. Potential Catalysts and Macroeconomic Influences Several external factors likely contributed to the selling pressure. In traditional finance, a sudden strengthening of the US Dollar Index (DXY) often creates headwinds for risk assets like cryptocurrencies. Simultaneously, bond yields experienced upward movement, drawing capital away from speculative investments. Regulatory news flow, particularly from key jurisdictions like the United States and the European Union regarding digital asset frameworks, can also induce short-term volatility. Market participants are now scrutinizing upcoming macroeconomic data, including inflation reports and central bank commentary, for directional cues. Technical Breakdown: The $66,000 level acted as both psychological and technical support, based on previous consolidation. A sustained break below could see tests of the next support near $62,000. Liquidations Cascade: Derivatives markets saw significant long position liquidations on exchanges like Binance and Bybit, exacerbating the downward move through forced selling. Institutional Flow: Data from fund providers like Grayscale and newly listed spot Bitcoin ETFs showed mixed flows, with some products experiencing minor outflows during the period. Recent Bitcoin Price Performance Snapshot Metric Value Context Current Price (Binance USDT) $65,927.23 As of April 2, 2025, 08:00 UTC 24-Hour Change -4.2% Measured from $68,800 Weekly High $70,120 Peak reached March 30, 2025 Key Support Zone $62,000 – $64,000 Next major technical area Market Dominance 52.1% Bitcoin’s share of total crypto market cap Expert Analysis and Long-Term Perspective Seasoned market analysts emphasize viewing such corrections within the broader adoption cycle. “Short-term volatility is the price of admission for the long-term transformation Bitcoin offers,” notes a report from Fidelity Digital Assets. Their research consistently highlights the asset’s performance across multi-year time horizons rather than daily fluctuations. Meanwhile, technical analysts point to the importance of the $64,000 level, which represents the 0.382 Fibonacci retracement level from the last major swing low. A hold above this level would be considered constructive for the bull case. The fundamental thesis for Bitcoin, driven by its fixed supply and growing recognition as a digital store of value, remains unchanged by a single price drop. The Impact on Altcoins and Broader Crypto Ecosystem Historically, sharp Bitcoin movements create ripple effects across the entire digital asset market. In this instance, major altcoins like Ethereum (ETH), Solana (SOL), and Cardano (ADA) also experienced declines, though their correlation to Bitcoin’s price action can vary. Decentralized Finance (DeFi) total value locked (TVL) and Non-Fungible Token (NFT) trading volumes often see indirect impacts from broader market sentiment shifts. This interdependence underscores Bitcoin’s continued role as the market leader and primary liquidity pillar for the cryptocurrency industry. Conclusion The Bitcoin price dropping below $66,000 serves as a stark reminder of the asset’s volatile nature. While the immediate move triggers caution, historical context and fundamental analysis suggest such pullbacks are normal within secular bull markets. The key for investors and observers lies in distinguishing between short-term noise and long-term signal. Monitoring on-chain data, macroeconomic conditions, and regulatory developments will provide clearer insight into whether this is a healthy correction or the start of a deeper trend change. The Bitcoin market’s resilience will be tested at the next technical support levels, with the overall 2025 narrative still hinging on widespread adoption and institutional integration. FAQs Q1: Why did Bitcoin fall below $66,000? The drop appears driven by a combination of technical selling after failing to break higher, leveraged long position liquidations in derivatives markets, and a broader risk-off sentiment in global markets possibly linked to macroeconomic data. Q2: Is this a normal occurrence for Bitcoin? Yes, historically, Bitcoin has frequently experienced corrections of 10-30% during its bull market cycles. These pullbacks are considered a common feature of its volatile growth trajectory. Q3: What is the most important level to watch now? Analysts are closely watching the $62,000 to $64,000 zone as the next major area of support. A sustained hold above this range would be viewed positively, while a break below could signal deeper correction. Q4: How does this affect other cryptocurrencies? Most major altcoins (alternative cryptocurrencies) have a high correlation with Bitcoin’s price movements, especially during sharp downturns. They typically experience similar or often greater percentage declines in such scenarios. Q5: Should long-term investors be concerned? Long-term investment theses for Bitcoin are generally based on fundamental factors like adoption, scarcity, and macro hedge properties, not short-term price swings. Most long-term strategies advise against reacting to daily volatility. This post Bitcoin Price Plummets Below $66,000: Analyzing the Sudden Market Shift first appeared on BitcoinWorld .

5 Feb 2026, 18:39

XRP price falls 19%, sliding below $1.25: is $1 next?

XRP slumped more than 19% over the past 24 hours to around $1.22, emerging as the worst-performing major cryptocurrency as Bitcoin fell about 7% on Thursday. The sharp decline was driven largely by forced selling in derivatives markets, highlighting the extent to which leveraged positioning has amplified recent losses. Data from CoinGlass showed that roughly $46 million worth of XRP positions were liquidated in the past 24 hours. Bullish bets accounted for about $43 million of that total, indicating that most of the losses stemmed from long positions being wiped out as prices broke key technical levels. Chart patterns from the session showed a steady decline through most of the day, followed by a sharp drop late in trading. Market participants described the move as consistent with a scenario in which buyers gradually step aside until a final wave of stop-loss orders and margin calls triggers a rapid sell-off. Fundamentals fail to support sentiment The slump has occurred despite a series of developments aimed at strengthening XRP’s institutional and decentralized finance use cases. Earlier in the week, Flare and Hex Trust announced institutional access for FXRP minting and FLR staking. The structure is designed to allow institutions to use XRP in decentralized finance applications without selling the underlying token. However, the announcement failed to lift market sentiment. Traders appeared unconvinced that the initiative would translate into meaningful near-term demand or that large-scale institutional flows were imminent. Separately, XRP-linked Ripple secured e-money licenses in Luxembourg and added Hyperliquid to its institutional prime brokerage platform, Ripple Prime. While such developments can support valuations during broader market uptrends, they had little impact in the current risk-off environment. Technical breakdown raises downside risk From a technical perspective, XRP’s decline has weakened its near-term structure. The move below the $1.44 level effectively turned a former support zone into overhead resistance. With that area now acting as a ceiling, traders are increasingly focused on the $1.00 mark as the next major psychological level. There is limited recent trading history between current prices and that threshold, increasing the risk of accelerated moves if selling pressure persists. Market participants said the current price action resembles a leverage unwind framed as a fundamentals story, with neither dynamic showing clear signs of exhaustion. Exchange balances and derivatives data worsen outlook On-chain and derivatives indicators also point to sustained pressure. Data from CryptoQuant showed that average XRP exchange reserves rose to about 2.71 billion tokens on Wednesday, up from 2.67 billion on Monday. Rising exchange balances during periods of volatility often signal that investors are moving assets onto trading platforms in preparation for selling. This increases the readily available supply and can amplify downward price movements. In derivatives markets, XRP futures open interest fell to $2.57 billion on Thursday from $2.61 billion a day earlier, according to CoinGlass. The decline indicates that traders are closing positions without opening new ones, a pattern consistent with risk reduction rather than renewed speculation. For context, open interest reached a record $10.94 billion on July 22, ahead of the October 10 crash that liquidated more than $19 billion in leveraged crypto positions. The post XRP price falls 19%, sliding below $1.25: is $1 next? appeared first on Invezz