U.S.-EU trade tensions related to tariff threats by U.S. President Donald Trump over Greenland have shaken the crypto market, in which derivative traders experienced significant losses.
The sell-off triggered over $5 million in long liquidations of Ripple (XRP), with Binance contributing over $1 million in liquidations.
This is because leveraged bets unwound alongside a broader risk-off move across digital assets.
XRP liquidations in the Crypto Market Align With Trump's Tariff Headlines
According to data from Together by market analyst Amr Taha on January 18, XRP saw one of the largest single-day liquidation events of the month.
Total liquidations of long positions reached $5 million USD, reflecting traders caught on the wrong side of a fast-moving downturn after macro headlines over the weekend shook sentiment.
The pressure followed a report published by the Financial Times stating that European capitals are considering tariffs of up to €93 billion EURO, or about $108 billion USD, on U.S. goods.
The move was described as a potential response to Trump’s threats against NATO allies over Greenland.
And it landed just days after the U.S. president confirmed new tariffs on several European countries, including Denmark, Germany, and France, starting February 1.
The crypto market reacted swiftly. Bitcoin dropped from above $95,000 to below $93,000 within hours.
With Kobeissi Reports stating that nearly $500 million in long leveraged positions were liquidated within about 60 minutes.
Meanwhile, CW traders said total liquidations across the market reached about $871 million over 24 hours.
XRP followed the broader market lower, amplifying losses for leveraged traders as volatility spiked on major exchanges.
XRP Price Action
Ripple's Token – XRP, has lost around 5% over the last week and nearly 8% in the last 14 days.
In the meantime, throughout the last month, it remained slightly higher, up more than 2%, while the year-to-date increase approached 39%.
The latest downturn pushed XRP towards the lower end of its weekly range, between $1.95 and $2.18, with sellers again defending the $2.10 to $2.15 area.
This move comes despite the recent strength in XRP exchange-traded funds, which posted a net inflow of around $57 million USD last week, reversing the short outflows seen earlier this month.
The sell-off on January 18 reinforced that caution, as macro headlines once again outweighed crypto-specific positives.