The cryptocurrency market has seen a notable sell-off over the past two days, which has led to a surge in liquidations.
Bitcoin BTC
-2.71%
the largest cryptocurrency by market capitalization, is said to have fallen 3.5% to $67,275 over the past 24 hours. The Block’s Bitcoin price datawhile Ethereum ETH
-4.33%
It fell 4.6% to $3,495.
The sale liquidated approximately $270.4 million from leveraged positions over the past 24 hours. Coin Glass. A significant portion, $238 million, was a long position.
As is the case with the broader market, Ethereum leads the way with $70.5 million in liquidations, $64.6 million of which were purchased. Bitcoin followed closely behind with $68.88 million. The exchange that experienced the most liquidations was Binance, with $99.7 million at the time of publication.
GMCI 30, which tracks the 30 largest cryptocurrencies, fell 4.6% to 135.58, the lowest since May 20.
Markets are heading into Wednesday’s double batch of macroeconomic releases: the monthly consumer price index report and the Federal Reserve’s monetary policy announcement.
Deribit CEO Luuk Strijers said in an interview with The Block earlier Tuesday that Bitcoin has more correlation with risk assets than usual.
“Traders are likely to hedge more conservatively, potentially reducing exposure or using options strategies until the economic outlook becomes clearer. Implied volatility has fallen across the curve for Bitcoin and Ethereum, despite this near-term uncertainty. Despite this, basis yields Strijers said call skew remains high for all listed expirations.
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