Crypto Market Sees $270 Million Liquidations Amid Rate Cut Concerns
Crypto markets experienced a significant unwind, resulting in $270 million in liquidations, primarily affecting longs in ETH and BTC.
- $170 million in ETH and $104 million in BTC were liquidated.
- 95% of these liquidations were from long positions due to pullbacks of 3% for ETH and 2% for BTC.
- Fading expectations for a September Fed rate cut contributed to this shift, with odds of "no cut" rising from 12% to 26%.
- ETH’s seven-day implied volatility increased to 73%, indicating anticipated turbulence.
- Probability of BTC reaching $100,000 by September rose to 21%, while the chance of ETH correcting to $4,000 increased to 60%.
- Markets have dismissed the possibility of a 50-basis-point cut at the upcoming Fed meeting.
As a result, Bitcoin dropped to $115,036, its lowest in nearly two weeks, while Ethereum was at $4,235. XRP remained stable at $3.02, reducing weekly gains to 4% from a previous high of 9%.