Markets
Crypto market faces massive sell-off, triggering $270 million in liquidations
Crypto market faces massive sell-off, triggering $270 million in liquidations
The cryptocurrency market has faced a significant decline over the past two days, leading to a wave of liquidations across various platforms. Bitcoin (BTC)the largest cryptocurrency by market capitalization, saw a 3.5% decline over the past 24 hours, trading at $67,275. Ethereum (ETH)the second-largest cryptocurrency, fell even more sharply, down 4.6% to $3,495.
This significant market downturn led to the liquidation of approximately $270.4 million in leveraged positions over the past 24 hours. according to at CoinGlass. A notable majority of these liquidations, totaling $238 million, involved long positions. Ether leads the liquidation total with $70.5 million, including $64.6 million in long positions, followed closely by Bitcoin with $68.88 million in liquidations. Binance became the leading exchange for these liquidations, recording $99.7 million at press time.
The market slowdown comes at a critical time, as investors prepare for significant macroeconomic updates. The monthly Consumer Price Index (CPI) report and the Federal Reserve’s monetary policy announcement are both scheduled for Wednesday. These reports are expected to provide crucial information on the economic outlook, influencing market sentiment and business strategies.
The increased correlation between Bitcoin and traditional risk assets suggests that cryptocurrencies are not immune to broader market dynamics. This is particularly evident when traders adopt more conservative strategies in anticipation of key economic data releases. The decline in implied volatility for Bitcoin and Ether indicates a more cautious market stance, with investors perhaps waiting for clearer signals before taking significant action.