Crypto market downturn leads to $432 M in liquidation | The Financial Express

Crypto market downturn leads to $432 M in liquidation

Over the past 24 hours, the negative upheaval has caused leveraged crypto traders to liquidate roughly half a billion in positions.

Crypto market downturn leads to $432 M in liquidation
According to Coinglass data, 130,087 dealers had their accounts liquidated for a total of $431.51 million.

As most cryptocurrencies started the week on a sour note, the instability on the cryptocurrency market continued into the third week of September. With multiple cryptocurrencies seeing double-digit declines during the last 24 hours, the overall market cap of cryptocurrencies once again fell below $1 trillion, as reported by Cointelegraph.

Over the past 24 hours, the negative upheaval has caused leveraged crypto traders to liquidate roughly half a billion in positions. According to Coinglass data, 130,087 dealers had their accounts liquidated for a total of $431.51 million. Leveraged Bitcoin (BTC) traders lost $44.5 million, followed by Ether (ETH) traders who lost $8.39 million in total, Cointelegraph noted.

Several macroeconomic reasons, notably the newly announced consumer price index (CPI) statistics issued on September 13 that indicated inflation is still rising, are being blamed for the present market turbulence. BTC’s price fell nearly $1,000 within minutes of the CPI data release. After that, the market attempted to rise over the weekend but had another carnage early on Monday.

It is anticipated that the Fed will raise interest rates in its forthcoming meeting on September 21 as a result of the stronger CPI data. The rate increase may be the largest in 40 years, according to market analysts, as a step to rein in the spiralling inflation.

The CME FedWatch Tool indicates that the market has completely priced in a minimum 75-basis-point increase in the federal funds rate and is not discounting the possibility of a 100-basis-point increase. The Fed would take this measure for the first time since the early 1980s with a 100-point rise, Cointelegraph stated.

Many people have accused the recently completed Ethereum Merge of being a case of “buy the rumour, sell the news,” as the price of Ether (ETH), which was up to $2,000 prior to the Merge, has since dropped to $1,300.

(With insights from Cointelegraph)

Also Read: Australian senator drafts bill aimed at stablecoin

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