In a shocking change of events, the cryptocurrency market saw a flurry of liquidations that cost over $1 billion in losses in only 24 hours. The consequences, which had an impact on around 200,000 dealers, shocked the market. As market volatility increased, traders were forced to deal with stop orders and margin calls, but there was a bright spot for shrewd investors looking to profit from the slump.
On famous exchange Bybit, a startling arbitrage opportunity presented itself, revealing an astounding 45% discount on the price of XRP. The derivative contracts XRPUSD and XRPUSDT, where a major depeg has place, showed distinct irregularities. The dollar-collateralized futures contract, in particular, showed an astounding value of $0.32 for XRP, while its USDT equivalent finished at $0.46. This pricing differential only existed for 20 minutes.
DeFi2, a well-known member in the crypto community, provided some explanations for this anomaly, attributing the issue to the impending exhaustion of spot XRP among algorithmic market makers. The cascade of large liquidations may have unintentionally stressed these market dynamics, which then resulted in the pricing dislocation.
Analysts attribute the market decline mostly to a critical Wall Street Journal piece that revealed SpaceX was selling its BTC holdings. The decline, though, was just momentary as an upsurge appeared shortly after the news of the preliminary clearance for Ethereum Futures ETFs surfaced.
As of right now, the peg on Bybit has been reinstated, and each token of XRP is trading for $0.505.
