Crypto Market Bloodbath Leads to $432M in Liquidation

The current market downturn is attributed to a number of macro factors, such as higher than expected CPI data and a possible rate of the highest Fed hike in 40 years.

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The crypto market turmoil entered the third week of September as most cryptocurrencies started the week on a bearish note. The total crypto market capitalization has once again fallen below $1 trillion, with several cryptocurrencies seeing double-digit drops in the past 24 hours.

The ongoing bearish turmoil has resulted in almost half a billion liquidations for leveraged crypto traders in the past 24 hours. Data from Coinglass highlights that 130,087 traders were liquidated with a total liquidation value of $431.51 million. Leveraged Bitcoin (BTC) traders lost $44.5 million, followed by Ether (ETH) traders with a total liquidation of $8.39 million.

Long traders suffered a significant share of losses on the majority of exchanges, with the average difference between the amount of long and short liquidations being 10X.

Liquidations on different exchanges Source: Coinglass

< p>The current market turmoil is attributed to several macroeconomic factors, including the recently released Consumer Price Index (CPI) data released on September 13, which shows that inflation has not yet slowed. The price of BTC fell nearly $1,000 within minutes of the CPI data release. Since then, the market has shown some willingness to rise over the weekend, but experienced another bloodbath earlier on Monday.

US Inflation shows persistent US retail price inflation with an acceleration in the heart of August. The stock fell less than expected at 8.3%, while core CPI rose to 6.3%. pic.twitter.com/ZAhxPUlvjn

— Holger Zschaepitz (@Schuldensuehner)