This week, the financial market as a whole is not looking good. As the rate hike gets closer, stocks and cryptocurrencies are going down. The most recent CPI report for August pushed the market closer to the edge.
The number was higher than expected, which made people in the industry even more afraid. As the Feds get ready to hit the market with the biggest rate hike, exchanges have started getting rid of leveraged positions. This plan is meant to cut down on losses as things happen.
Coinglass has shared information about the liquidations that are happening on different exchanges right now. The data app shows that 130,087 traders have had their positions closed.
At the time this was written, the total was $431,51,000,000. In the ongoing frenzy, a lot of Bitcoin and Ethereum traders lost more money. When Bitcoin traders liquidated their leveraged positions, they lost $44.5 million. When Ethereum traders liquidated their positions, they lost $8.39 million.
Based on the positions, those who were long took the lead, and those who were short followed. Coinglass says that the difference between the two is 10X, and that Okex has seen the most liquidation so far.
The amount of money that was liquidated on Okex was $190.41. This amount was made up of $181.30 million in long positions and $9.11 million in short positions.
After Okex, Binance is the next exchange with a lot of trades. The exchange got rid of long positions worth $77.49 million and short positions worth $12.99 million, which added up to $90.48 million.
Other top riders in a frenzy include FTX, which has long and short positions worth $57.59 million, and Bitmex, which has $28.78 million. There are also ByBit and Huobi, which had total liquidations of $27.86 million and $18.91 million, respectively.
The price changes of assets this week have made the crypto market even more uncertain. Many cryptocurrencies’ prices have dropped by more than 10% in the last 24 hours.Because of the drop in prices, the total value of the market is now less than $1 trillion.
Analysts say that many macroeconomic factors are to blame for the ongoing downtrend. The CPI data that shocked everyone on September 13 is the most important. The data was worse than expected, showing that inflation is still a big problem.
The data had an effect as soon as it was made public. The top cryptocurrency, Bitcoin, lost $1000 in just a few minutes. After that, the prices of other crypto assets started going down, which hurt investors.
Another thing that seems to be bringing down the market is the Ethereum Merge. After the upgrade, the price of crypto fell to $1,300, which led many people to believe that it had been overhyped.
The Fed’s meeting on September 21 is causing panic in the market because of the high CPI data. The market is waiting for the next interest rate increase, and experts are already predicting a number that hasn’t been seen in 40 years. The Fed might move to a 100-point reserve after the meeting.