On June 11, Bitcoin experienced a 2.5% drop from its daily high of $69,547 to a low of $66,018. Ether faced a slightly larger decline, falling 2.58% to $3,500.
This downturn in the crypto market severely affected leveraged trades, wiping out almost $200 million.
Data from crypto analytic firm CoinGlass revealed that over the past 24 hours, 83,912 traders were liquidated, totaling $190.97 million in liquidations.
The largest single liquidation order occurred on OKX, involving an ETH/USDT swap worth $5.21 million.
When a trader cannot meet margin requirements or lacks funds to sustain an open position, an exchange will liquidate a leveraged position, leading to a partial or complete loss of the trader’s initial margin.
Bitcoin traders suffered the most, with $46.9 million in liquidations over the past 24 hours, including $36.8 million in long positions and $14.07 million in short trades.
Ether traders saw the second-largest liquidation, totaling $41.0 million, with $31.3 million in long positions and $9.68 million in short trades.
This wave of liquidations follows a previous significant event on June 7, when the crypto market saw $400 million in liquidations.
The recent market correction and subsequent turmoil in the leveraged markets are attributed to the upcoming May Consumer Price Index (CPI) report and the Federal Open Market Committee (FOMC) meeting on June 12.
READ MORE: EU Election Results Set to Shape Future of Cryptocurrency and Blockchain Regulation
Historically, CPI data releases and FOMC rate changes have caused volatility in the crypto market as investors seek to reduce risk.
Currently, the 30-day correlation between the crypto market and U.S. equities is at its highest since 2022.
When the CPI rises, Bitcoin generally declines in price.
The overall digital asset market is similarly affected, as higher prices on necessities reduce people’s discretionary income, leaving less money available for investment.
Reports suggest that the FOMC is expected to keep the interest rate unchanged, maintaining the benchmark lending rate between 5.25% and 5.50%.
Meanwhile, CPI data is anticipated to remain within the 0.1% to 0.3% range.
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.
