Markets
The cryptocurrency market is facing a sharp sell-off, triggering $270 million in liquidations
The cryptocurrency market is facing a sharp sell-off, triggering $270 million in liquidations
The cryptocurrency market has faced a significant sell-off over the past couple of days, resulting in a wave of liquidations across various platforms. Bitcoin (BTC)the largest cryptocurrency by market capitalization, fell 3.5% in the last 24 hours, trading at $67,275. Ethereum (ETH)the second-largest cryptocurrency, fell even more sharply, down 4.6% to $3,495.
This substantial market decline has led to the liquidation of approximately $270.4 million in leveraged positions over the past 24 hours, second at CoinGlass. Most of these liquidations, totaling $238 million, came from long positions. Ether led the liquidation count with $70.5 million, of which $64.6 million were long positions, followed closely by Bitcoin with $68.88 million in liquidations. Binance has emerged as the leading exchange for these liquidations, recording $99.7 million at the time of publication.
The market downturn comes at a critical time, with investors bracing for significant macroeconomic updates. The Federal Reserve’s monthly consumer price index (CPI) report and monetary policy announcement are expected on Wednesday. These reports are expected to provide crucial information on the economic outlook, influencing market sentiment and trading strategies.
The increased correlation between Bitcoin and traditional risk assets suggests that cryptocurrencies are not immune to broader market dynamics. This is especially evident as traders adopt more conservative strategies in anticipation of the release of key economic data. The decline in implied volatility on Bitcoin and Ether indicates a more cautious market attitude, with investors likely waiting for clearer signals before making significant moves.