Crypto Crash Wipes Out $190M in Leveraged Bets Amid CPI Data Watch

On June 11, Bitcoin experienced a sharp decline, dropping 2.5% from its daily peak of $69,547 to a low of $66,018. Ether suffered a slightly larger percentage decline of 2.58%, hitting $3,500. This downturn had a significant impact on leveraged trades within the crypto market, resulting in nearly $200 million being wiped out.

Data from crypto analytics firm CoinGlass revealed that in the past 24 hours, 83,912 traders were liquidated, with the total sum of liquidations reaching $190.97 million. The most significant single liquidation order occurred on the OKX exchange, involving an ETH/USDT swap valued at $5.21 million. Liquidation typically happens when traders cannot meet margin requirements or run out of funds to maintain their positions, leading exchanges to sell off those positions, causing traders to lose part or all of their initial investments.

Bitcoin and Ether were the most affected by these liquidations. Bitcoin traders lost the most, with $46.9 million liquidated in the last day. Out of this, $36.8 million were long positions, while $14.07 million were short trades. Ether traders weren’t far behind, with $41.0 million liquidated, including $31.3 million from long positions and $9.68 million from short positions.

This liquidation event followed a significant market correction a few days earlier on June 7, when the crypto market saw a massive $400 million wiped out. Market analysts and traders point to the upcoming May Consumer Price Index (CPI) report and the Federal Open Market Committee (FOMC) meeting on June 12 as contributing factors to the recent sell-offs and heightened market volatility.

Historically, the release of CPI data and changes in FOMC rates have caused considerable volatility in the crypto market. Investors often react by reducing risk exposure, leading to abrupt price changes. The correlation between the crypto market and U.S. equities is currently the highest it has been since 2022, further influencing market dynamics. Typically, when the CPI rises, the price of Bitcoin and other digital assets tends to decline.

One reason for this pattern is that when the cost of living increases, people have less disposable income to invest in cryptocurrencies. The current economic reports suggest that the FOMC is likely to maintain the benchmark lending rate between 5.25% and 5.50%, without any changes. CPI data is anticipated to stay within the 0.1% to 0.3% range.

Investors are keenly observing these economic indicators as they can significantly impact the digital asset market. Any surprises in the CPI report or unexpected actions from the FOMC could lead to further market turbulence, affecting both crypto prices and trader behavior.

The recent market reversals and significant liquidations underscore the volatile nature of cryptocurrency markets, especially in the context of economic data releases. Traders should continue to monitor these indicators closely, as they will likely play a crucial role in shaping market trends in the coming days.

10 thoughts on “Crypto Crash Wipes Out $190M in Leveraged Bets Amid CPI Data Watch

  1. Seriously, almost 84,000 traders liquidated? 😬 That’s harsh. The crypto market is exhausting with its never-ending drama and sharp declines.” 💔

  2. Wow, another bloodbath in the crypto market. 😕 Can’t believe how much money was wiped out overnight. These liquidations are brutal!” 😩

  3. I’m getting tired of watching my investments get liquidated due to market corrections. These rapid declines and liquidations are disheartening.

  4. Bitcoin’s decline hitting $66,018 is unsettling. And Ether falling to $3,500? These drops are really testing my patience.

  5. Honestly, these market reversals are getting old. Every time we see some progress, a CPI or FOMC report sends everything crashing down. Cant win!

Leave a Reply