On Wednesday, the FOMC meeting and the subsequent outcomes had a profound impact on the cryptocurrency market. Due to the dramatic price swings during and after the FOMC meeting, liquidity volumes quickly rose across the entire market. Tens of thousand of traders became caught up in the chaos of what was the biggest liquidation trend of recent months.
330 million Crypto Liquidations
On Wednesday, Fed officials announced that interest rates would be increasing by 0.75 percent. This announcement directly affected the crypto and macro markets. Bitcoin prices plummeted by 8%.
Massive liquidations took place across the crypto market as a result. The total amount of liquidation on the cryptocurrency market reached $330million by Thursday. More than 88,000 crypto traders were affected. The decline had clearly affected long traders the most. However, the price was on the rebound and short traders were equally hard hit.
Liquidations cross $330 million | Source: Coinglass
An estimated $336 million was liquidated in the past day. Of that, 58.96% came from long traders. The remaining $138.13 million came from short liquidations. Okex’s Okex exchange was responsible for the largest single liquidation, with an average trade of $3.13million across the BTCUSDT–SWAP pair.
Ethereum is the Leader
Since Ethereum successfully went from proof-of-work to proof-of stake, recent attention has been focused on Ethereum. This attention has also increased the efficiency of cryptocurrency traders and the currency’s performance in recent years.
ETH liquidations accounted for almost half the $336million in crypto market liquidations in a 24-hour span. This transaction had a total value of $151.45 million due to the 117.73KETH that was liquidated.
Source: Crypto Total Market Cap on TradingView.com| Source: Crypto Total Market Cap on TradingView.com
Bitcoin however, which is the most popular cryptocurrency, had a record of $55.31 million in liquidation during that time. This is roughly half the volume of ETH liquidation than BTC.
Another token to see massive liquidations was XRP, but to a lesser extent than Ethereum and bitcoin. SOL reached $6.73million and ETC reached %5.61million, respectively, and XRP saw $9.77million in volume. Other cryptocurrencies had liquidation volumes less than $5 million.
Featured image taken from TradingView.com chart of The World Economic Forum
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