Markets
Crypto Market Faces Massive Selloff, Generating $270 Million in Liquidations
Crypto Market Faces Massive Selloff, Generating $270 Million in Liquidations
The cryptocurrency market has faced a significant sell-off over the past two days, resulting in a wave of liquidations across multiple platforms. Bitcoin (BTC)the largest cryptocurrency by market capitalization, saw a 3.5% decline in the last 24 hours, trading at $67,275. Ethereum (ETH)the second-largest cryptocurrency, fell even more sharply, dropping 4.6% to $3,495.
This substantial market downturn led to the liquidation of approximately $270.4 million in leveraged positions in the last 24 hours, according to for CoinGlass. A notable majority of these liquidations, totaling $238 million, occurred in long positions. Ether led the liquidations count with $70.5 million, of which $64.6 million were long positions, followed closely by Bitcoin with $68.88 million in liquidations. Binance emerged as the top exchange in these liquidations, recording $99.7 million at the time of publication.
The market downturn comes at a critical time, with investors preparing for significant macroeconomic updates. The monthly Consumer Price Index (CPI) report and Federal Reserve monetary policy announcement are scheduled for Wednesday. These reports are expected to provide crucial information about the economic outlook, influencing market sentiment and trading strategies.
The high correlation between Bitcoin and traditional risk assets suggests that cryptocurrencies are not immune to broader market dynamics. This is particularly evident as traders adopt more conservative strategies in anticipation of the release of important economic data. The drop in implied volatility in Bitcoin and Ether indicates a more cautious market stance, with investors possibly waiting for clearer signals before taking significant action.