Bitcoin, the largest cryptocurrency by market capitalization, fell sharply after last weekend’s two-month high above $25K.
After the release of minutes from the most recent Federal Open Market Committee (FOMC) meeting revealed that the U.S Fed was unlikely to lessen its present monetary hawkishness, the flagship crypto slipped below a bullish trendline late on Wednesday.
To combat excessive inflation, the Fed Reserve has increased interest rates by a significant 75 basis points at each of its most recent two sessions.
After trading in a range for a few days, bitcoin decreased by several hundred dollars to a weekly low of around $22K.
For the day, 105,425 traders were liquidated, totaling $210.41 million in liquidations. The greatest single liquidation order, worth $980.14K in ETHUSDT, took place on Binance.
When an exchange forcibly terminates a trader’s leveraged position as a result of a partial or complete loss of the trader’s initial margin, this is referred to as liquidation. It occurs when a trader cannot meet the margin requirements for a leveraged position (fails to have sufficient funds to keep the trade open). Both margin trading and futures trading include liquidation.
Crypto market outlook
- The majority of altcoins are now losing money. Top altcoins like Binance Coin, Polkadot, Cardano, and XRP all experienced similar price declines.
- Price actions reveal that after falling to $22K the previous week, Bitcoin launched an offensive and raised a few thousand dollars. This culminated in a weekend increase to over $25,200, which marked the asset’s highest price in more than two months.
- It didn’t manage to keep going up or even stay there, though. The price of bitcoin plummeted by over $1,000 to over $24K in the ensuing hours.
- It lingered there for a while and even began a second leg higher, but it eventually stopped at around $24,400. The bears once again took control of the market and drove BTC south.
- Digital assets charts showed gains over the weekend as well, but they had a slow start to the work week and are now in the negative.
- At more than $2,050, Ethereum reached a multi-month high for itself. It was stopped there, and since then, it has lost $200. As a result, Ether is currently struggling at $1.8Kfollowing a small daily loss.