XRP just suffered a massive 18.5% drop to $2.11, shocking investors and raising concerns about a further decline to $1.65. The cryptocurrency market collectively lost $100 billion in market value within 24 hours. Bitcoin (BTC) crashed below $89,000 for the first time since November, and Ethereum (ETH) plunged under $2,400, reaching its lowest level since October.
What’s Causing the Crypto Crash?
This downturn does not stem from a crypto-specific issue. Instead, political and macroeconomic factors appear to be driving the selloff.
A major trigger emerged when Donald Trump confirmed that his tariff plans for Mexico and Canada would proceed after the postponement period ends. His statement sent shockwaves through global markets, and crypto was no exception.
This is not the first time an external event has caused panic in the digital asset space.
How Global Events Trigger Crypto Chaos
In January, the launch of DeepSeek AI unexpectedly shook investor confidence, causing a broad market correction. In October, Iran’s missile strike on Israel (Operation True Promise 2) created uncertainty, prompting a sharp Bitcoin selloff. The 2024-2025 Trump re-election rally initially fueled a bullish run, proving how political developments influence crypto.
These events highlight an important reality—crypto markets do not operate in isolation. External factors significantly impact investor sentiment, and this latest downturn is no exception.
XRP Holders Should Watch These Critical Levels
XRP lost its crucial $2.30 support level, a key threshold for maintaining its bullish trend. According to on-chain analyst Ali Martinez, XRP could fall another 22% to $1.65 if the selling pressure continues.
Despite this bearish outlook, the token still has support levels at $2.08 and $1.85. If XRP stabilizes above these points, it could avoid a more severe crash. However, if it breaks below these levels, a deeper decline seems inevitable.
Will Crypto Recover from This Meltdown?
Despite today’s market chaos, experienced traders see volatility as an opportunity. Crypto markets have historically rebounded from downturns, often with stronger momentum. The key question now is: What comes next?
For Bitcoin and Ethereum, traders are closely watching for stabilization signs and possible rebound levels. For XRP, its short-term movement depends on whether it holds at $2.08 or $1.85. The overall market trend will likely follow macroeconomic developments, particularly U.S. economic policies and global trade agreements.
What Should You Do Next?
Staying informed is crucial as market sentiment shifts rapidly. Following expert analysis will help you navigate these volatile conditions. Avoid panic selling, as emotional decisions often lead to missed opportunities. Instead, analyze the situation carefully before taking action.
Some investors may see this as a prime buy-the-dip opportunity. If history is any indication, today’s crash could set the stage for a major rebound.
Final Thoughts
The $100 billion crypto market plunge has sent shockwaves through the industry. XRP, Bitcoin, and Ethereum are all reeling from the impact, and investors are searching for answers.
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Trump’s tariff plans have once again demonstrated that crypto is deeply intertwined with global economic events. The question now is whether this correction will turn into a longer downturn or a buying opportunity for savvy investors.
