Over $540 Million Liquidated as Bitcoin, Ethereum Plummet

Bitcoin (BTC) continued its bearish price action for the third day in a row, with the leading cryptocurrency dropping to a weekly low of $21,814 today, according to data from CoinMarketCap.

After a brief recovery, Bitcoin is now switching hands at around $21,785 each, down 6.9% on the day despite a 7.69% increase in daily trading volumes.

Bitcoin’s market cap has more than halved, from $1.27 trillion last November to less than $417 billion today.

Ethereum, the second-largest cryptocurrency by market cap, has also fallen to around $1,728, down 6.2% in the past 24 hours.

With a current market cap of $211.5 billion, ETH is down 64.49% from its all-time high of $4,891 in November, according to data from CoinMarketCap.

Amid bearish price action, more than $537 million from 156,155 traders has been liquidated in the crypto market in the past 24 hours, data from 156,155 traders suggests. coin glass.

Bitcoin leads liquidations at $201.3 million, followed by Ethereum at $132.7 million in the same period.

The vast majority of liquidations for the two leading cryptocurrencies came from inflated long positions.

Other cryptocurrencies including: Binance Coin (8%), Solana (11.6%), polygon (11.85%), and Avalanche (14.3%), have also suffered huge losses in the past 24 hours, according to CoinMarketCap.

Bitcoin, Ethereum Respond to the Fed

The market’s bearish price action is likely related to the Fed’s expected rate hike next month and reduced DeFi activity.

As reported by Wall Street Journal, St. Louis Fed President James Bullard is in favor of a 0.75% rate hike by next month. San Francisco Fed President Mary Daly also confirmed a rate hike of 0.50% or 0.75% next month. reported by Reuters.

Both have confirmed that rates can be increased as long as rising inflation is being checked.

User activity across all DeFi applications on Ethereum was also negative over the past week following concerns about the coming merge event.

According to data from Dune AnalyticsThe trading volume of the decentralized exchange (DEX) has fallen by 34% in the past 24 hours.

According to data from DefiLlamaTotal Locked Value (TVL) across all blockchains has fallen by more than 3.75% in the past 24 hours, indicating decreased user interest in DeFi.


The views and opinions of the author are for informational purposes only and do not constitute financial, investment or other advice.

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