Over $1 Billion in Leveraged Positions Liquidated Amid Crypto Market Sell-Off
Crypto markets experienced over $1 billion in leveraged position liquidations within 24 hours, driven by higher-than-expected U.S. Producer Price Index data, raising inflation concerns and delaying Federal Reserve rate cuts.
- Bitcoin reached a new all-time high above $123,500 before the sell-off.
- Dogecoin (https://holder.io/coins/doge/) fell 9%, leading losses among major cryptocurrencies.
- Solana's (https://holder.io/coins/sol/) SOL, XRP, and BNB Chain's (https://holder.io/coins/bnb/) BNB dropped between 3-7%.
- $866 million in long positions were liquidated compared to $140 million in short positions.
- Ether saw the largest liquidation at $348.9 million, followed by Bitcoin at $177.1 million.
- Bybit accounted for the largest share of liquidations at $421.9 million.
Market analysts note that macroeconomic factors are influencing crypto performance. Jeff Mei from BTSE mentioned the inflation surprise halted recent rally momentum. Nick Ruck from LVRG Research highlighted the sensitivity of crypto to macro liquidity changes and indicated that traders are now focused on upcoming U.S. economic data for insights into Fed policy direction.