Crypto Market Faces Unexpected Hit with Massive Liquidations
The crypto market faced a sudden downturn on April 12, resulting in a massive liquidation of almost $500 million within an hour. The price of Bitcoin and other major altcoins like Ethereum and Solana experienced significant declines, leading to the liquidation of over 277,000 traders’ leverage positions.
Bitcoin’s price dropped by 4.49% to $66,052, causing a ripple effect across the market. The total crypto liquidations reached $877.21 million, with long positions accounting for the majority of losses. The largest liquidation order of $7.19 million occurred in the ETH-USD market on the OKX exchange.
The market crash coincided with a dip in the US stock market, with the S&P 500 index falling by 1.6%. This decline followed the release of CPI data showing a rise in the inflation rate to 3.5% year over year in March, indicating that the Fed may not implement rate cuts soon.
Despite the recent market turmoil, Bitcoin has seen an increase in non-empty wallets on its network ahead of the upcoming Halving event on April 19. Blockchain analytics platform Santiment reported a rise in active BTC wallets, suggesting a positive trend leading up to the event.
At the time of writing, Bitcoin was trading at $66,882 with a significant increase in daily trading volume. However, the overall trend for Bitcoin’s price has been lackluster in recent weeks, with declines of 1.33% and 6.20% in the last seven and 30 days, respectively.
As the crypto market continues to navigate through volatility, investors are keeping a close eye on market developments and upcoming events like the Bitcoin Halving for potential opportunities and risks.
