The crypto market started out the new week on a low note with prices of digital assets across the space plunging once again. As a result of this, a significant amount of liquidations have taken place across the market, leaving tens of thousands of investors nursing losses during this time.
Over 45,000 Traders Caught In Crypto Liquidations
The crypto liquidations ramped up quickly as Bitcoin lost its footing above the $29,500 support and dropped down to the low $29,000s. As a result, a large number of traders lost their positions rapidly, leading to a significant spike in the liquidation volumes.
According to data from Coinglass, over 45,000 crypto traders suffered losses as a result of the market fluctuations in the last day. Given that the price of the likes of Bitcoin fell, long traders were mostly the victims of these liquidations.
As the data tracker website shows, of the more than $130 million in liquidations recorded over the single-day period, long traders accounted for the overwhelming majority at 86.38% of total liquidations. This means that long liquidation volumes were more than $100 million in this 24-hour time frame.
As expected, Bitcoin led the majority of liquidations, but the likes of Dogecoin always saw significant volumes during this time. However, where most of the market was seeing liquidations due to falling prices, traders who were short DOGE suffered the most. This is because the meme coin has been on a recovery trend fueled by Elon Musk’s support.
Total market cap now sitting close to $1.14 trillion | Source: Crypto Total Market Cap on Tradingview.comWill The Market Recover Soon?
Right now, the market is anticipating the FOMC announcement that is taking place on Wednesday. As a result of this, there likely will not be much movement in the market for the next day. This is because investors will hold their positions in anticipation of the Fed’s announcement and not do anything else until then.
What this also means though is that just like there is a low possibility of recovery, there is also a low possibility of a downtrend. As trading stalls, so will the price of cryptocurrencies such as Bitcoin, causing the market to range in its current position until the meeting is concluded.
However, depending on the Fed’s announcement, volatility is expected to follow. Although the direction of the market will rely entirely on whether or not the Fed decides to hike interest rates or reduce them once more. The latter would be good for the market, while the former will more than likely lead to a fall in prices.
The U.S. Security and Exchange Commission (SEC) is encountering difficulties in recruiting professionals with expertise in cryptocurrency, with a significant hindrance being its own policies, as revealed in a recent agency report.
JasperEveryone saw Gensler refusing to answer if ETH is a security. And now we know why.
AlexThe London Stock Exchange Group (LSEG) recently published a job listing for the position of director of digital assets. This new role seeks an individual with a strong interest in digital assets, cryptocurrencies, and distributed ledger technology.
JasperThe global surge in reported crypto scams has sparked inquiries about the possible link between the growth of the cryptocurrency market and the escalation of fraudulent incidents.
Hui XinThe Bored Ape Yacht Club's former Social Lead, Shpend Salihu, has resigned after the resurfacing of racist and antisemitic posts from his past.
AaronIn the much-anticipated "Treehouse of Horror XXXIV" episode of "The Simpsons," the beloved animated series delves into the realm of blockchain and non-fungible tokens (NFTs). This marks a return to their comedic exploration of the crypto space, delivering an engaging parody with nods to well-known NFTs and artists.
JixuBlur's token had already been on a price surge, climbing from $0.15 to $0.27 over about three weeks, marking an 80% gain. However, things took an interesting turn when rival marketplace OpenSea announced a 50% reduction in its workforce. The news gave Blur's token an additional boost, increasing by 30%.
AaronShiba Inu developer, Kaal Dhairya, has reported a technical issue plaguing the self-custodial authentication system integrated into The Shib Magazine.
CatherineYuga Labs employee has resigned amid controversy surrounding past racially insensitive and antisemitic tweets, sending ripples through the NFT community. The incident has raised concerns about background screenings in the industry and brought past allegations against Yuga Labs back into the spotlight.
JasperThe ongoing legal skirmish involving Bitboy has intensified; he is determined to recover assets that were seized, including a Lamborghini that mysteriously disappeared.
Kikyo