The liquidation comes just a few days after the crypto market recorded a $400 million liquidation on Friday, June 7.
On June 11, Bitcoin fell 2.5% from its daily high of $69,547 to a low of $66,018. Ether experienced an even larger percentage decline, falling 2.58% to $3,500. The crypto market downturn significantly impacted leveraged trades, wiping out nearly $200 million.
According to data from crypto analytic firm CoinGlass, over the past 24 hours, 83,912 traders were liquidated, with a total liquidation of $190.97 million. The largest single liquidation order happened on OKX, with an ETH/USDT swap value of $5.21 million.
When a trader fails to meet margin requirements or runs out of money to maintain the open position, an exchange will liquidate a leveraged position, resulting in a partial or whole loss of the trader’s initial margin.
Bitcoin and Ether leveraged traders biggest losers
Bitcoin BTC $67,440 traders were the biggest losers, with $46.9 million in liquidations in the past 24 hours, of which $36.8 million were long positions and $14.07 million were short trades. Ether ETH $3,519 traders registered the second-largest liquidation with $41.0 million, of which $31.3 million were longs and $9.68 million were shorts.
The liquidation comes just a few days after the crypto market recorded a $400 million liquidation on Friday, June 7.
The recent market correction followed by a bloodbath in the leveraged markets is linked to the upcoming May Consumer Price Index (CPI) report and the Federal Open Market Committee (FOMC) on June 12.
Traders await FOMC and CPI data
Historically, CPI data releases and FOMC rate changes have had a volatile impact on the crypto market as investors rush to decouple risk. Currently, the 30-day correlation of the crypto market with U.S. equities is at its highest since 2022.
When the CPI rises, Bitcoin typically declines in price. The digital asset market as a whole is no exception. When people face price increases on necessities, they have less discretionary cash available, thus less money to invest.
According to reports, the FOMC is expected to keep the rate unchanged, maintaining the benchmark lending rate of 5.25%–5.50%, while CPI data is expected to remain in the 0.1% to 0.3% range.
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