Crypto Market Sees Sharp Decline Amid Heated Debate Between Bitcoin and XRP Fans

On January 26, 2025, Ripple CEO Brad Garlinghouse sparked a heated debate between bitcoinists and XRP fans with a tweet that seemed to fuel the already tense atmosphere. The comment section quickly turned into a battlefield, with both sides exchanging blows.

The Market Decline

The “slow weekend” in question turned out to be extremely fast in terms of top cryptos losing their value. XRP lost over 10% in 24 hours, marking its worst day since December 18, 2024. Bitcoin saw a nearly 7% drop as well. While it’s unclear if Garlinghouse’s tweet had any direct impact on the market crash, it did reignite a long-standing debate between the two camps.

Reasons Behind the Downfall

Several factors contributed to the negative impact on the market. One of the main reasons was the harsh tariffs proposed by Donald Trump, which some experts believe could lead to inflation growth. Additionally, the release of DeepSeek, a Chinese ChatGPT competitor, caused turmoil in the stock and crypto markets after topping the U.S. App Store chart.

Furthermore, the upcoming $9.5 billion in Bitcoin and Ethereum options expiry on January 31, 2025, prompted traders to fix profits and exit the market, sending prices even lower. Finally, the $800+ million in crypto liquidations in 24 hours also played a significant role in the market decline.

The XRP vs Bitcoin Fans Feud

The entire market saw no safe spaces during the downfall, but XRP lost the most, and Bitcoin enthusiasts were quick to voice their criticisms. The two camps have been at odds since XRP’s rise to prominence in 2017. XRP has been under fire from decentralization proponents for its focus on leveraging cryptocurrency to serve banks instead of overthrowing them.

XRP has been criticized for its centralized network, which uses too few nodes, and its aim to facilitate remittance services for banks via crypto. Garlinghouse’s 2020 statement concerning the need to sell XRP from time to time to keep Ripple alive has also been a point of contention. Bitcoin maxis interpret this as a sign that Ripple created tokens out of thin air and sells them to grab cash.

However, XRP supporters argue that this is simply a business strategy. It’s worth noting that Bitcoin has no dev team and saw no pre-sale, but the difference lies in who holds the most of the supply. In the XRP case, it’s the Ripple company, while in the Bitcoin case, it’s companies like BlackRock and MicroStrategy that have acquired large amounts of Bitcoin.

Escalating Tensions

Some XRP fans have responded to the criticisms by posing XRP as a utility currency, while Bitcoin is seen as a dated, slow coin only good for hodling or speculating. The tensions have escalated, with both sides exchanging blows on social media.

The Ripple team’s attempts to negotiate with the Trump administration to include XRP in a multi-currency crypto reserve basket have also sparked controversy. Bitcoin maxis have criticized Ripple for trying to get the government to buy XRP while being a mass seller of XRP themselves.

As the crypto journey of the new administration unfolds, it’s unclear what angles it will take. Will it be Bitcoin-exclusive or multi-token? Only time will tell.

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