Cryptocurrency Market Update: Major Cryptocurrencies Experience Drop, $250 Million in Derivatives Market Liquidations
Cryptocurrency Market Faces Drop, $250 Million in Derivatives Liquidated
Major cryptocurrencies experienced a drop on Monday, with $250 million in the crypto derivatives market facing liquidations. Bitcoin (CRYPTO: BTC) saw a 3.10% decrease, trading at $69,058, while Ethereum (CRYPTO: ETH) dropped by 5.12% to $3,500. Surprisingly, Dogecoin (CRYPTO: DOGE) bucked the trend with a 5.30% increase, reaching $0.18.
The drop in cryptocurrency prices comes as the market anticipates the April 10 Consumer Price Index (CPI) release, which is expected to be higher than previously forecasted. This led to a wave of liquidations in the derivatives market, catching bullish traders off guard and resulting in a surge of long liquidations.
Over the past 24 hours, more than $242.87 million in long positions have been liquidated, with $152 million wiped out in the last 12 hours alone. This has had a negative impact on asset prices, with a total of 83,164 traders being liquidated. The largest single liquidation occurred with Ether on OKX, totaling $7.53 million.
Despite the overall drop in the market, some cryptocurrencies managed to see gains. Nervos Network (CRYPTO: CKB) rose by 8.71%, trading at $0.034, while Bittenson (CRYPTO: TAO) and Fantom (CRYPTO: FTM) also saw increases of 8.56% and 4.84% respectively.
The global cryptocurrency market cap now stands at $2.69 trillion, showing a 4.25% increase in the past 24 hours. Investors will be closely monitoring the upcoming March consumer price index report for insights into potential rate cuts by the Federal Reserve.
Cryptocurrency analyst Michael Van de Poppe noted that Bitcoin is currently trending downward, leading to market consolidation. Meanwhile, Benjamin Cowen suggested that a potential market correction may occur if altcoins start to decline against Bitcoin due to recessionary pressures.
As the market continues to fluctuate, investors are advised to stay informed and exercise caution in their trading decisions.
