This week, the overall financial market has been dismal. The anticipation for the rate rise is causing stocks and cryptos to plummet. Markets are moving towards the edge due to the latest CPI August.
This was a surprise, increasing industry fear. Exchanges are liquidating their leveraged positions as the Feds gears up to strike the markets with the largest rate increase. As events occur, this strategy will help reduce losses.
BTCUSD September 19, 2022| BTCUSD September 19, 2022
Traders’ Positions Liquidated As The Market Panics
Coinglass revealed the details of liquidations that are currently occurring across a variety of exchanges. The data app shows that 130,087 traders had their positions liquidated.
At the time this article was written, it had reached $431.51million. The continuing frenzy has caused many cryptocurrency traders to lose more. Bitcoin traders were unable to liquidate $44.5 million from their leveraged positions. Ethereum traders saw their losses increase by $8.39 million.
According to the position, the longs were the most dominant while those in the short positions followed their lead. Coinglass says that there is a 10X difference in liquidation between the two, with Okex being the most liquidated.
Okex liquidations totalled $190.41. This included $181.30million for long positions, and $9.11million for short positions.
Binance is the next exchange to have high liquidations following Okex. This exchange had $77.49million in liquidated positions for long and $12.99million in liquidated positions for short, totaling $90.48 Million.
The other top traders in a frenzy are FTX (57.59 million) in both long and short positions as well as Bitmex (21.878 million). Huobi with $27.86 million, and $18.91million in total liquidations is available.
Macro Factors Responsible For Market Downtrend
This week’s price movements have increased uncertainty on the cryptocurrency market. Many cryptocurrencies trade in red and have seen a double-digit decline in trading volume in the last 24hrs. Market capitalization has fallen below $1 trillion due to the price crash.
Analysts attribute the continuing downtrend to many macroeconomic variables. CPI data, which shocked everybody on September 13, is one of the most notable. This data showed that inflation continues to rage, even though it was more than expected by the market.
It was easy to see the impact of this data immediately following its publication. Bitcoin lost $1000 in just minutes. The prices of other crypto assets dropped to investors’ detriment.
Ethereum Merge is another factor that seems to be driving the4 market lower. The crypto price plummeted to $1300 after the upgrade. Many people believed that the hype was exaggerated.
Related reading: Ethereum could gain 10% before it reverses
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. After the meeting, it is possible that the Feds will move up to 100 points.
Stocks and crypto remain bearish at the moment. The market’s move after September 21 might prove more frightening than the one it experienced today on September 19.
Featured image taken from Pixabay. Chart from TradingView.com