The cryptocurrency downturn has led to $190 million in leveraged positions as traders keep an eye on CPI data.
On June 11, Bitcoin fell 2.5%, falling from a daily high of $69,547 to a low of $66,018. Ethereum had an even bigger decline, falling 2.58% to $3,500. This downturn in the cryptocurrency market had a significant impact on leveraged trading, causing losses of nearly $200 million.
According to data from cryptocurrency analytics firm CoinGlass, 83,912 traders were liquidated in the last 24 hours, with a total liquidation amount of $190.97 million. The largest single liquidation order on OKX, ETH-USDT-SWAP, was valued at $5.21 million.
If a trader fails to meet the margin requirements or lacks funds to maintain the position, the exchange will liquidate the leveraged position, resulting in a loss of part or all of the trader’s initial “margin.”
Bitcoin and Ethereum Leveraged Traders Are the Biggest Losers
Bitcoin (BTC) traders suffered the most losses with $46.9 million liquidated in the last 24 hours, with $36.8 million in buy positions and $14.07 million in sell positions.
Ethereum (ETH) traders recorded the second largest liquidation at $41 million, of which $31.3 million were long liquidations and $9.68 million were short liquidations.
The liquidation comes just days after the cryptocurrency market recorded a $400 million liquidation on Friday.
The situation that is unfolding in the leverage market following the recent market correction is connected to the soon-to-be-announced Consumer Price Index (CPI) report in May and the Federal Open Market Committee (FOMC) meeting on June 12.
Related: The new 3% drop puts BTC price at risk of falling by $60,000 as Bitcoin bidding liquidity shrinks.
Traders are awaiting FOMC and CPI data.
Historically, CPI data releases and FOMC interest rate changes have had a volatile impact on cryptocurrency markets as investors rush to segregate risk. The 30-day correlation between the cryptocurrency market and U.S. stocks is currently at its highest since 2022.
When CPI rises, Bitcoin typically experiences a price decline. The digital asset market as a whole is no exception. When prices of basic necessities rise, people have less discretionary cash available and less money to invest.
According to the report, the FOMC is expected to keep interest rates unchanged, maintaining its benchmark lending rate of 5.25% to 5.50%, and CPI data is expected to remain in the 0.1% to 0.3% range.
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