TL;DR
- Liquidations in the crypto market total $182.99 million in the last 24 hours.
- The largest liquidation order was recorded on OKX with an ETH/USDT swap valued at $5.21 million.
- Traders are attentive to the upcoming Consumer Price Index (CPI) data and the Federal Open Market Committee (FOMC) meeting.
The recent cryptocurrency market crash has sparked a wave of liquidations in leveraged positions, reaching a total of $182.99 million in the last 24 hours.
According to data provided by CoinGlass, of this amount, $101.38 million corresponded to long positions and $81.61 million to short positions.
In this same period, 76,383 traders saw their positions liquidated.
The largest settlement order was recorded on the OKX platform, involving an ETH/USDT swap worth $5.21 million.
This phenomenon of liquidations occurs in a context of high volatility in the market, as traders prepare for the publication of the next Consumer Price Index (CPI) data and the meeting of the Federal Open Market Committee (FOMC).
These dates are crucial for investors, given that the decisions and economic data that emanate from these meetings usually have a significant impact on market behavior.
Historically, CPI releases and FOMC rate changes have generated significant fluctuations in the cryptocurrency market, as investors adjust their risk profiles in response to new information.
In recent days, Bitcoin (BTC) suffered a 2.5% drop, falling from a daily high of $69,547 to $66,018.
For its part, Ether (ETH) registered a decrease of 2.58%, standing at $3,500.
These drops in the prices of major cryptocurrencies exacerbated liquidations in the leveraged market.
The correlation between the crypto market and the US stock markets has reached its highest point since 2022, reflecting a close link between both markets.
The upcoming CPI report and the FOMC meeting generate great expectations among investors.
The FOMC is expected to keep the benchmark interest rate in a range of 5.25% to 5.50%, while the CPI data is projected in a range of 0.1% to 0.3%.
These projections are crucial, as an increase in CPI usually results in a decrease in the price of Bitcoin and other cryptocurrencies.
This is because, given the increase in prices of essential goods, consumers have less money available to invest in digital assets.
Recent liquidation in crypto market reflects market sensitivity to economic uncertainty
Investors seek to adjust their strategies to mitigate risks, causing abrupt movements in the market.
Monitoring upcoming economic announcements will be decisive in predicting the future direction of the cryptocurrency market.
The inherent volatility of the crypto market and its close relationship with traditional economic indicators underscores the importance of proper risk management.
Traders must be prepared to react to market fluctuations, adjusting their positions based on new economic information.
The ability to quickly adapt to changes in the economic environment will be key to successfully navigating the volatile world of cryptocurrencies.
