On June 11, Bitcoin fell 2.5%, from a daily high of $69,547 to a low of $66,018. Ether saw a further decline of 2.58% to $3,500. This slowdown in the cryptocurrency market had a significant impact on leveraged trading, resulting in a loss of approximately $200 million.
According to data from cryptocurrency analytics firm CoinGlass, 83,912 traders were liquidated in the past 24 hours, with a total liquidation of $190.97 million. The largest liquidation order took place on OKX – ETH-USDT-SWAP worth $5.21 million.
When a trader fails to meet margin requirements or lacks money to keep the position open, the exchange will liquidate the leveraged position, resulting in a partial or total loss of the trader’s initial “margin.”
Traders who profited from Bitcoin and Ether are the biggest losers
Bitcoin (BTC) traders were the biggest losers, with $46.9 million liquidated in the past 24 hours, including $36.8 million in long positions and $14.07 million in short positions.
Ethereum (ETH) traders saw the second largest liquidation at $41.0 million, including $31.3 million in long liquidations and $9.68 million in short liquidations.
The selloff comes days after the cryptocurrency market recorded a $400 million selloff on Friday.
The latest wave of market correction followed by a bloodbath in the leveraged market is linked to the upcoming May Consumer Price Index (CPI) report and the Federal Open Market Committee (FOMC) report ) from June 12.
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Traders await FOMC and CPI data
Historically, CPI data releases and FOMC rate changes have had a volatile impact on the cryptocurrency market, with investors rushing to decouple risks. Currently, the 30-day correlation between the cryptocurrency market and US stocks is the highest since 2022.
When the CPI rises, Bitcoin generally experiences a price decline. The digital asset market as a whole is no exception. When people face rising prices for basic necessities, they have less discretionary cash and therefore less money to invest.
According to reports, the Federal Open Market Committee is expected to keep interest rates unchanged while keeping the benchmark interest rate between 5.25 and 5.50 percent, while CPI data is expected to remain in the range of 0.1% to 0.3%.
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