Crypto Downtrend Led Investors To Liquidate Over $432 Million
September 20 2022 - 6:34AM
NEWSBTC
The overall financial market is discouraging this week. Stocks and
cryptos are plummeting as anticipation of the upcoming rate hike
grows. The latest CPI for August was a force that pushed the market
towards the edge. The figure was higher than expected,
increasing fear in the industry. As the Feds prepares to hit the
market with the biggest rate hike, exchanges have started
liquidating leveraged positions. This strategy is geared at cutting
down losses as events unfold. Related Reading: WATCH: Bitcoin
Bloody Monday Leads To Reversal Hammer | BTCUSD September 19, 2022
Traders’ Positions Liquidated As The Market Panics Coinglass
has disclosed the data of liquidations currently taking place
across diverse exchanges. According to the data app, 130,087
traders have seen their positions liquidated. The total amount has
reached $431.51 million at the time of writing. Many crypto traders
of Bitcoin and Ethereum were hit more in the ongoing frenzy.
Bitcoin traders lost $44.5 million of their leveraged positions,
while Ethereum traders lost $8.39 million in liquidations.
Going by the positions, the longs took the lead while the short
position holders followed suit. According to Coinglass, the amount
between the two is 10X, and the highest liquidation so far occurred
on Okex. Data shows that Okex liquidations amounted to
$190.41, comprising $181.30million in long positions and $9.11
million in short positions. The following exchange with high
liquidations after Okex is Binance. The exchange liquidated $77.49
million in long positions and $12.99 million in short positions,
amounting to $90.48 million. Other top riders in a frenzy
include FTX with $57.59 million in long and short positions and
Bitmex with $28.78 million. There is also ByBit and Huobi, with
$27.86 million and $18.91 million in total liquidations.
Macro Factors Responsible For Market Downtrend The price movement
of assets this week has increased the uncertainty in the crypto
market. Many cryptocurrencies are trading in red, with a
double-digit downfall in the last 24 hours. The price crash has
pushed the overall market capitalization below $1 trillion.
Analysts are attributing the ongoing downtrend to many
macroeconomic factors. The most prominent one is the CPI data that
shocked everyone on September 13. The data was higher than the
market expected, showing inflation still rages. The effect of
the data was seen immediately after its release. The number one
crypto, Bitcoin, lost $1000 within minutes. From then onwards,
other crypto assets started shedding prices to the detriment of
investors. Another factor seemingly pushing the4 market down
is Ethereum Merge. After the upgrade, the crypto price plunged to
$1300, leading to many people believing the predictions that it was
overhyped. Related Reading: Ethereum Could Gain 10% Before
ETH Resumes Its Reversal Due to the high CPI data, the Fed’s
meeting on September 21 is causing panic in the market. The market
is waiting for the next interest rate hike, and pundits are already
predicting a figure that hasn’t been seen in 40 years. The Feds
might move to a 100-point after the meeting. Currently, both
stocks and crypto are strongly bearish. After September 21, the
market move might be more terrifying than what it is today,
September 19. Featured image from Pixabay and chart from
TradingView.com
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