Just a few days after the crypto market witnessed a $400 million liquidation on Friday, June 7, another significant liquidation event occurred.
On June 11, Bitcoin experienced a 2.5% drop from its daily high of $69,547 to a low of $66,018. Ether followed suit with a larger percentage decline of 2.58%, falling to $3,500. This downturn in the crypto market had a substantial impact on leveraged trades, resulting in nearly $200 million in losses.
According to data from CoinGlass, over the past 24 hours, 83,912 traders faced liquidation, totaling $190.97 million. The largest single liquidation occurred on OKX, involving an ETH/USDT swap valued at $5.21 million.
When traders fail to meet margin requirements or lack funds to maintain their open positions, exchanges liquidate leveraged positions, leading to partial or complete loss of the trader’s initial margin.
Bitcoin and Ether leveraged traders were the hardest hit:
Bitcoin traders faced liquidations totaling $46.9 million in the past 24 hours, with $36.8 million from long positions and $14.07 million from short trades.
Ether traders experienced the second-largest liquidation, totaling $41.0 million, with $31.3 million from long positions and $9.68 million from short positions.
The recent liquidation event coincides with the upcoming May Consumer Price Index (CPI) report and the Federal Open Market Committee (FOMC) meeting on June 12.
Traders are closely monitoring the FOMC meeting and CPI data release, as these events historically have a volatile impact on the crypto market. The 30-day correlation between the crypto market and U.S. equities is currently at its highest level since 2022.
Bitcoin typically sees a decline in price when the CPI rises, as do other digital assets. This is because rising prices on essential goods leave people with less discretionary income to invest.
Reports suggest that the FOMC is likely to keep the rate unchanged, maintaining the benchmark lending rate between 5.25% and 5.50%, while CPI data is expected to remain within the 0.1% to 0.3% range.
Source: cointelegraph.com
