Crypto Markets Face Deep Correction Amid Hawkish Fed Stance While XRP Sees Major Institutional Expansion in US
Crypto Markets Face Deep Correction Amid Hawkish Fed Stance While XRP Sees Major Institutional Expansion in US
The broader cryptocurrency market is experiencing a severe downturn, with over $90 billion in market value lost within an hour and $1.3 billion in leveraged positions liquidated. Bitcoin plummeted below $105,000, dragging major altcoins like Ethereum, Solana, and XRP into significant losses, driven by a hawkish Federal Reserve stance and a surge in the U.S. Dollar Index, leading to 'Extreme Fear' in the market.
In stark contrast, Ripple has made a strategic move by officially launching Ripple Prime in the US. This new spot prime brokerage firm, established through the acquisition of Hidden Road, aims to position XRP at the center of institutional trading, liquidity, and settlement for Wall Street clients. Analysts anticipate this will transform XRP from a 'retail coin' into an institutional asset, potentially driving substantial upward price pressure through increased demand and steady trading volumes, offering a positive counter-narrative amidst the market's current turmoil.
Crypto Market Meltdown Deepens Amidst Hawkish Fed and Mass Liquidations
The cryptocurrency market has entered one of its steepest sell-offs in months, witnessing a staggering loss of over $90 billion in market value within just one hour and triggering more than $1.3 billion in liquidations as leveraged positions were wiped out across exchanges. This sharp correction has seen Bitcoin (BTC) plummet below $105,000, extending a downtrend initiated late last week. Major altcoins, including Ethereum (ETH), Solana (SOL), and XRP, have mirrored this decline, experiencing double-digit percentage losses.
The primary catalyst for this market crash is attributed to renewed hawkishness from the Federal Reserve. Despite recent rate cuts, Fed Chair Jerome Powell's remarks emphasizing that further cuts are not guaranteed and that inflation remains 'on the wrong path' sent shockwaves through global risk markets. The U.S. Dollar Index (DXY) surged to over 100, its highest level since August, triggering technical selling as Bitcoin breached critical support zones. Institutional investors further amplified the downtrend by offloading positions through U.S. spot Bitcoin ETFs.
According to CoinGlass data, total liquidations exceeded $1.37 billion in 24 hours, with long positions accounting for nearly 90% of the total. Bitcoin led with over $396 million in liquidated assets, followed closely by Ethereum at $368 million. The largest single liquidation event occurred on HTX Exchange, where a $47.8 million BTC-USDT long position was closed out. The Crypto Fear and Greed Index has plunged to 21, indicating 'Extreme Fear.' More than 327,000 traders have been wiped out. Altcoins faced heavier losses, with Solana dropping 8%, Ethereum slipping 5%, and XRP and Cardano (ADA) tumbling over 5.5%. The total crypto market cap has shrunk below $3.5 trillion, its lowest level since July.
Ripple's Strategic US Launch Positions XRP for Institutional Adoption
In contrast to the broader market downturn, Ripple has solidified its presence within the US financial market with the official launch of Ripple Prime. This new US-based spot prime brokerage firm, following Ripple's acquisition of Hidden Road, is heralded as a pivotal moment for both Ripple’s ecosystem and the future of XRP. Analysts are closely watching how this development could redefine XRP’s role within institutional trading, liquidity, and settlement.
Crypto analyst Pumpius announced on X that Ripple Prime is officially live in the US, marking Ripple’s full-scale institutional entry into Wall Street’s playing field. Through this platform, institutional investors in the US will gain the ability to execute Over-the-Counter (OTC) Spot transactions across major digital assets, including XRP, for the first time. Ripple Prime is built as a regulated brokerage infrastructure, offering deep multi-asset liquidity and on-demand settlement powered by XRP, placing the digital asset at the core of institutional trading, settlement, and liquidity aggregation.
This strategic integration is expected to generate significant upward pressure on the XRP price, driven by consistent institutional demand beyond retail usage. Ripple has confirmed that Ripple Prime will expand institutional access to not just digital assets but also derivatives, swaps, and fixed income instruments, all under one unified system. Crypto commentator BD further emphasized that Ripple Prime will transform XRP's market perception, enabling US institutional clients direct access to XRP through the same infrastructure used for Foreign Exchange (FX) and commodities, thus evolving XRP from a 'retail coin' into an institutional asset with stronger liquidity and trading volumes.