Prashant Jha6 minutes agoCrypto downturn nukes $190M leveraged positions as traders eye CPI dataThe liquidation comes just a few days after the crypto market recorded a $400 million liquidation on Friday.59 Total viewsListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksOn June 11, Bitcoin fell by 2.5%, dropping from its daily high of $69,547 to a low of $66,018. Ether experienced an even larger percentage decline, falling 2.58% to $3,500. This downturn in the cryptocurrency market resulted in a significant impact on leveraged trades, wiping out nearly $200 million.
According to datafrom crypto analytic firm CoinGlass, over the past 24 hours, 83,912 traders were liquidated with a total liquidation of $190.97 million The largest single liquidation order happened on OKX - ETH-USDT-SWAP value of $5.21 million.
When a trader fails to meet margin requirements or runs out of money to maintain the position open, an exchange will liquidate a leveraged position, resulting in a partial or whole loss of the trader’s initial “margin.”Bitcoin and Ether leveraged traders biggest losers
Bitcoin (BTC) traders were the biggest losers, with $46.9 million in liquidation over the past 24 hours, of which $36.8 million were long positions and $14.07 million were short trades.
Ether (ETH) traders registered the second-largest liquidation with $41.0 million, of which $31.3 million was long liquidation and $9.68 million was short liquidation.Crypto Liquidation. Source: Coinglass
The liquidation comes just a few days after the crypto market recorded a $400 million liquidation on Friday.
The recent bout of market correction followed by a bloodbath in the leveraged market is linked to the upcoming May Consumer Price Index (CPI) report and Federal Open Market Committee (FOMC) on June 12.Liquidation chart. Source: Coinglass
Related:BTC price risks $60K dive as Bitcoin bid liquidity thins on new 3% dipTraders await FOMC and CPI data
Historically, CPI data releases and FOMC rate changes have had a volatile impact on the crypto market as investors rush to decouple risk. Currently, the 30-day correlation of the crypto market with U.S. equities has been the highest since 2022.
When the CPI rises, Bitcoin typically experiences a decline in price. The digital asset market as a whole is no exception. When people face price rises on necessities, they have less discretionary cash available, thus less money to invest.
According to reports, FOMC is expected to keep the rate unchanged maintaining the benchmark lending rate of 5.25-5.50%, while CPI datais expected to remain in the 0.1%-0.3% range.
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