$328 Million in Crypto Liquidations Triggers Market Sell-Off
The crypto market is undergoing significant turmoil, with $328 million in liquidations reported. Major altcoins such as Ethereum, Solana, and Cardano experienced double-digit losses this week, while Bitcoin showed relative stability.
Market Overview
- Total liquidations on centralized exchanges reached $328.45 million in 24 hours.
- Long position liquidations accounted for $262.41 million; short sellers lost $66.04 million.
- Ethereum dropped 5% in one day and over 14% weekly.
- Solana and Cardano fell 17% and 16%, respectively.
- Bitcoin declined by 2% daily and 6% weekly, maintaining a dominance of 54.8% in the market.
- Ethereum's market dominance decreased to 11.3%.
- Historical trends suggest long-term investors may buy during price dips.
Macroeconomic Factors
- The U.S. dollar strengthens, making crypto more expensive for foreign investors.
- Rising Treasury yields decrease attractiveness of riskier assets like crypto.
- Concerns about economic reports and Federal Reserve rate policies contribute to market bearishness.
- Major stock indices are under pressure, impacting investor sentiment towards cryptocurrencies.
- Bitcoin faces challenges in proving itself as an inflation hedge amid macroeconomic uncertainty.