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Cryptocurrency Downtrend Has Investors Liquidated Over $432 Million

Overall financial markets have been disappointed this week. Stocks and cryptocurrencies have plunged amid growing hopes of future rate hikes. His latest CPI in August was a force pushing the market to its limits.

The numbers are higher than expected and have raised concerns within the industry. Exchanges are beginning to liquidate their leveraged positions as the Federal Reserve prepares to enter the market with its biggest rate hike. This strategy aims to cut losses as events unfold.

Related reading: Watch: Bitcoin’s Bloody Monday Leads to Reversal Hammer | BTCUSD Sept 19, 2022

Market panics and traders’ positions are liquidated

Coinglass has published data on current liquidations on various exchanges. According to the data app, 130,087 traders had their positions liquidated.

At the time of writing, the total amount has reached $431.51 million. Many crypto traders in Bitcoin and Ethereum have been hit harder in the ongoing frenzy. The Bitcoin trader lost his $44.5 million in leveraged positions and the Ethereum trader lost him $8.39 million in liquidation.

By position, long positions took the lead, followed by short position holders. According to Coinglass, the amount between the two is 10X, with the highest liquidation ever made on Okex.

According to the data, Okex liquidated $181.3 million, with $181.3 million long and $9.11 million short.

After Okex, the exchange with the highest clearing rate is Binance. The exchange liquidated $77.49 million in long positions and $12.99 million in short positions, for a total of $90.48 million.

Other top riders with enthusiasm include $57.59 million FTX and $28.78 million Bitmex in long and short positions. There are also ByBit and Huobi, with liquidation totals of $27.86 million for him and $18.91 million for him.

Bitcoin is currently trading above $19,500. | | Source: BTCUSD price chart on TradingView.com

Macro factors responsible for market downtrend

Asset price movements this week have added to the uncertainty in the crypto market. Many cryptocurrencies are trading in the red, posting double-digit losses over the past 24 hours. The price crash has pushed the overall market capitalization below $1 trillion.

Analysts attribute the ongoing downtrend to a number of macroeconomic factors. Most notably his CPI data that shocked everyone on September 13th. The data is higher than market expectations and shows that inflation is still rampant.

The effect of the data was seen immediately after its release. Bitcoin, the number one crypto, lost him $1000 in minutes. Since then, other crypto assets have started dropping in price, hurting investors.

Another factor that seems to be pushing down the4 market is the Ethereum merge. After the upgrade, the price of the cryptocurrency plummeted to $1300, leading many to believe the prediction that it was overvalued.

Related reading: Ethereum Could Gain 10% Before ETH Resumes Reversal

The September 21st Fed meeting is causing panic in the market as CPI data is high. Markets are waiting for the next rate hike and experts are already predicting numbers not seen in 40 years. Fed may move to 100 points after meeting.

Both stocks and cryptocurrencies are very bearish right now. Market moves after September 21st could be scarier today than he was on September 19th.

Featured image from Pixabay and chart from TradingView.com

Cryptocurrency Downtrend Has Investors Liquidated Over $432 Million

Source link Cryptocurrency Downtrend Has Investors Liquidated Over $432 Million

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