Story Highlights
- Bitcoin, XRP, and Dogecoin crash after Trump’s recession warning.
- Bitcoin drops 8% to $79K, triggering massive liquidations.
- Analyst warns XRP’s price is highly sensitive to capital shifts.
- Dogecoin whales buy 1.7B DOGE despite market downturn.
The cryptocurrency market experienced a sharp decline after U.S. President Donald Trump hinted at a possible recession, triggering panic among investors. The market crash hit Bitcoin together with XRP and Dogecoin the hardest, as Bitcoin lost 8% of its value through falling to $79,177, which liquidated millions from long-position investors. The big liquidations led XRP to drop to $2.06 and Dogecoin to decrease to $0.16401.
Arthur Hayes Predicts Bitcoin to Test $78K, Support at $75K
A market slump occurred after Trump gave his interview comments to Maria Bartiromo on Sunday Morning Futures. He stated that he disliked making such predictions. The transition process continues because our initiative spans on a wide scale. The market reacted to his ambiguous statement with doubt, which caused investors to sell their assets aggressively throughout the crypto market.
The Bitcoin Fear & Greed Index registered Extreme Fear again due to market sentiment changes indicating bearish potentials. The market analysts observed the price trend of Bitcoin and Arthur Hayes made two price predictions as he believed the currency would rest at $78K while $75K functioned as its upcoming support level. Investment experts predicted additional price drops would happen if market selling intensity persisted strongly.
Small Capital Moves Cause Big XRP Price Shifts, Says Analyst
The XRP market exists under significant changes in its market capitalization. Meanwhile, crypto analyst Zach Rector explained how the asset’s value easily shifts by small changes in market capitalization through what he termed the “XRP market cap myth.” XRP lost more than $15 billion market cap price after the SEC submitted its appeal brief on January 15, 2025, which sent XRP price under $3.20.
The amount of $55 million outflow from XRP triggered its price drop despite the overall decrease of $15 billion in market capitalization. Rector noted that the market cap multiplier for XRP sometimes went over 589x and even into the thousands, showing how easily its value changes with money moving in or out.
Dogecoin Whales Make Bold Moves Despite Crypto Slump
Some investors use market downtrends strategically to strengthen their positions. Data shows that Dogecoin whales have intensified their accumulation activities during the last 72 hours. The on-chain analyst Ali Martinez announced on X (formerly known as Twitter) that the biggest whales accumulated 1.7 billion DOGE during the past three days. A large portion of investors seem to purchase Dogecoin as a sign of readiness for future market improvement.
Lastly, the cryptocurrency market remains on edge as recession fears and market uncertainty drive further volatility. Bitcoin demonstrates difficulty in defending important support zones alongside XRP, showing quick changes to its market capitalization due to changes in investor capital flow. On the other hand, large Dogecoin whale investments indicate a growing positive sentiment from big investors toward the meme coin.
