As the release of the Consumer Price Index (CPI) data approached, the cryptocurrency market saw a massive sell-off. Nearly $190 million in leveraged positions were wiped out, impacting many traders.
Massive liquidations on the market
In the last 24 hours, 83,912 traders were liquidated, resulting in a total loss of $190.97 million. The largest single liquidation was recorded on OKX with a value of $5.21 million for an ETH/USDT swap. These liquidations were exacerbated by a recent market correction, which had already seen a $400 million liquidation a few days earlier.
Impact on Bitcoin and Ethereum
Bitcoin and Ethereum traders were the hardest hit by this wave of liquidations. Long and short positions in Bitcoin recorded losses of $46.9 million and $14.07 million respectively. For Ethereum, losses totaled $41.0 million, with $31.3 million in long positions and $9.68 million in short positions.
Waiting for CPI data and FOMC decisions
Investors are keeping a close eye on the release of CPI data and the decisions of the Federal Open Market Committee (FOMC). Historically, these events have had a significant impact on the cryptocurrency market. With a high correlation between the crypto market and US equities, any change in the indices could lead to increased volatility.
Conclusion
Massive liquidations in the cryptocurrency market, combined with the wait for economic data, are creating a climate of uncertainty for traders. The imminent release of CPI data could bring significant changes, influencing investor strategies and market dynamics.
