XRP’s beta to Bitcoin spikes 2.5x after $19B liquidation flush


XRP’s beta to Bitcoin spikes 2.5x after B liquidation flush


XRP fell about 15 percent intraday on Friday during the tariff scare tied to White House remarks, then recovered about 9 percent on Monday as risk appetite stabilized, providing a live read on how the token tracks Bitcoin in macro stress and relief.

The Monday bounce saw Bitcoin up about 3.7 percent, Ethereum up about 9 percent, and Solana up about 8.2 percent, with XRP outpacing Bitcoin on the rebound. Friday’s selloff arrived alongside one of the largest derivatives liquidations this year, with about $19 billion in positions wiped out across crypto.

XRP vs Bitcoin beta

Daily price tables for Oct. 10 through Oct. 13 show the XRP intraday drawdown on Friday and the snapback on Monday that traders used to recalibrate the token’s event beta to Bitcoin. The shock, flush, and relief sequence maps neatly to a simple ratio framework, measuring XRP’s percentage move versus Bitcoin’s percentage move over the same window.

Using Monday performance numbers, XRP’s rebound beta screens near 2.5 times Bitcoin, while the down leg on Friday screens closer to 1.1 to 1.3 times based on price table lows.

That asymmetry matters in practice, because short covering and liquidity pockets can propel XRP further in relief phases than in the initial drawdown.

A straightforward way to operationalize this for the next 10 calendar days is to anchor ranges on Bitcoin’s path and apply conditional betas that respond to leverage rebuild, funding, and macro volatility.

System leverage reset materially on Friday. The scale of forced deleveraging cleared crowded longs and created visible air pockets in derivatives order books. Where open interest and funding migrate from here sets the fuel mix for the next move.

Coinglass dashboards for XRP show open interest, funding rates, long-short composition, and  liquidation heatmap that marks price bands where forced sellers would be triggered. If funding turns positive and open interest rises into the week, the market is refilling risk, and the next impulse higher would run into those short liquidation clusters, which can mechanically extend a rally once price trades into them.

Macro tape explains the timing. U.S. equities rebounded Monday as the White House tone turned more conciliatory on trade, the Financial Times reported, following a weak close on Friday. Barron’s tracked an uptick in equity volatility on the tariff headlines, with the VIX moving above 20 in the crash window, a level that has historically coincided with wider crypto intraday ranges.

The dollar index has been choppy into October, and TradingEconomics models place the index near the upper 90s for late-quarter readings. Meanwhile, Reuters reported oil falling to a five-month low on growth concerns connected to tariff risk.

That combination, firmer dollar and softer oil, tends to cap broad risk appetite, which means crypto beta compresses when volatility normalizes and expands when volatility spikes.

10 day scenario modeling

The base case for the next 10 days uses three observable inputs, Bitcoin’s drift, derivatives positioning, and the tariff headline path.

If equities and the VIX cool from Friday’s spike and stay under the low 20s, and if funding on XRP futures sits near neutral with open interest rebuilding at a measured pace, a working beta of 1.3 to 1.8 times to Bitcoin is reasonable.

In that setup, a 4 percent Bitcoin advance would map to a 5 to 7 percent XRP gain, and a 4 percent Bitcoin pullback would map to a 6 to 8 percent XRP drop, with short-term overshoots when price tags liquidation bands.

A squeeze scenario comes into play if the White House rhetoric continues to soften, equities hold gains, funding flips meaningfully positive, and open interest rises quickly. Monday’s tape already delivered a 2.5 times read on up beta, so a 6 to 8 percent Bitcoin climb in that environment would map to 12 to 20 percent for XRP, with extension risk if the nearest short liquidation bands are crossed.

A renewed tariff flare-up would bring back downside focus. In that case, betas tend to moderate on the first leg lower because liquidity thins and market makers widen spreads.

A Bitcoin drop of 8 to 10 percent under fresh stress would imply 10 to 15 percent downside for XRP, and subsequent breaks through prior long liquidation clusters would add gap risk.

Cross-market liquidity continues to skew toward Bitcoin this year, a point reinforced by Kaiko’s research on relative depth and returns.

That structural backdrop helps explain why XRP rallies can be sharp when positioning flips and then fade without a durable flow catalyst. Flows would change if the market receives clearer progress on exchange-traded product filings or other routes that bring persistent demand into the asset, but until that is visible on the calendar, positioning and macro drivers remain the primary governors of XRP’s beta to Bitcoin.

In practical terms, volatility control remains simple: monitor the VIX, watch funding and open interest on XRP futures, and track the dollar index around trade headlines.

For readers who want a compact view of the shock window, the following table lays out the Friday low to Monday close path and the implied event beta using the sources above. Values are rounded to one decimal place and are intended to frame the scenario math rather than serve as tick-by-tick price records.

Asset Move, Fri intraday to Mon close Event beta vs BTC
Bitcoin +3.7% Mon rebound, double-digit Fri drawdown at lows 1.0x
XRP ~−15% Fri intraday, ~+9% Mon ~1.1–1.3x down leg, ~2.5x up leg

Traders can fold this into a simple if this then that map.

If the VIX holds under 20 and funding is positive while open interest rises, the squeeze case becomes more probable, and the 2 to 3 times up beta observed on Monday is the guide.

If the tariff narrative heats up and the VIX returns above 22, use the downside map with early beta near 1.3 to 1.5 times and monitor long liquidation bands below.

If Bitcoin chops within about plus or minus 2 percent and XRP funding stays muted, expect mean reversion into the nearest visible liquidation clusters rather than trend.

None of this requires speculation about catalysts beyond what is on screen in derivatives dashboards and macro tickers, and the same inputs will set the next ten percent for XRP as the tariff tape evolves.