When does leverage on Bitcoin become a threat — volatility analysis and XRP community strategy

The recent days in the cryptocurrency market have been more stable than elsewhere, but now they are characterized by dramatic fluctuations that are under increasingly close observation. The digital asset market was previously more predictable, and now it is a time when small impulses cause changes in valuation worth billions of dollars. Such conditions did not spare XRP, which — despite its smaller market capitalization — experienced comparable volatility relative to broader market trends. This draws attention to structural issues in trading infrastructure that cannot be ignored.

Shocking Price Movements and Liquidated Positions

A detailed observation of Bitcoin price movements in the recent period revealed a sequence of events that were astonishing to market participants. The capital markets monitoring platform The Kobeissi Letter shared an analysis:

Bitcoin experienced an increase of about $3 thousand dollars within just 60 minutes, moving from the $80,000 range to a short-term breach of the $90,000 threshold. At the same time, there was mass liquidation of short positions, with estimated losses of around $120 million for traders betting on a decline.

However, this was only the beginning of the story. Soon after these liquidations, Bitcoin reversed its trajectory and fell below $86,000, causing another wave of liquidations — this time of long positions — worth approximately $200 million.

This entire sequence resulted in an estimated change in market capitalization of $140 billion in just two hours. This volatility raises questions about the nature of such movements — were they random fluctuations, or strategically planned actions aimed at forcing liquidations?

Dominance Effect and Spread to XRP

Bitcoin’s turbulence was not isolated. Other digital assets, including XRP, were immediately affected by similar dynamics. Although XRP operates on a significantly smaller market, a rapid increase from around $1.90 to nearly $2.00 within two hours was observed, followed by an equally rapid decline.

According to the latest data from January 12, 2026, XRP is trading at $2.05 with a change of -0.20% over the last hour. This volatility reflects broader market movements and confirms that large trading entities have the ability to influence the prices of multiple assets simultaneously.

Some market observers point out that such episodes systematically put retail traders at a disadvantage, while institutions with substantial capital benefit from instability.

XRP Community and Positioning Strategy

Despite the price pressure, some well-known commentators — like Digital Asset Investor — show readiness to increase exposure to XRP. This approach is based on the assumption that sharp corrections reflect institutional actions rather than a long-term change in fundamentals.

This accumulation strategy during dips is supported by earlier comments from analysts who suggested that retracements below key levels could be opportunities for long-term investors. The Polish community and the international XRP Army see current conditions as potential entry points for those who missed earlier rallies.

Nevertheless, experts emphasize that such positions represent personal opinions and do not guarantee financial results. Although allegations of deliberate manipulation remain unproven, the recent series of dramatic price movements has reignited discussions about transparency and fairness of trading practices in cryptocurrency markets.