The crypto market turmoil entered the third week of September as most of the cryptocurrencies started the week on a bearish note. The total crypto market cap dipped below $1 trillion again, with several cryptocurrencies recording a double-digit downfall over the past 24 hours.
The ongoing bearish turmoil has led to nearly half a billion in liquidations for the leverage crypto traders over the past 24 hours. Data from Coinglass highlight that 130,087 traders were liquidated with a total liquidations value of $431.51 million. Bitcoin (BTC) leverage traders lost $44.5 million, followed by Ether (ETH) traders with a total liquidation of $8.39 million.
Long traders made a significant chunk of losses on majority of the exchanges with the average difference between the amount of long and short liquidations being 10X.
Liquidations on Different Exchanges Source: Coinglass
The current market turmoil is being attributed to several macroeconomic factors, including the recently released consumer price index (CPI) data released on Sept. 13 that showed inflation is yet to cool off. BTC’s price fell nearly $1,000 within minutes of the CPI data release. Since then, the market showed some will to move up over the weekend but saw another bloodbath earlier on Monday.
US inflation shows persistent US retail inflation w/acceleration at August core. Headline drops less than forecast to 8.3%, while Core CPI rose to 6.3%. pic.twitter.com/ZAhxPUlvjn
— Holger Zschaepitz (@Schuldensuehner) September 13, 2022
The higher CPI data is expected to be followed by a Fed rate hike in the upcoming meeting scheduled for Sept. 21. Market pundits have predicted that the rate hike could be the biggest in 40 years as a measure to control the soaring inflation.
According to the CME FedWatch Tool, the market has now fully priced in a minimum 75-basis-point hike for the Fed funds rate and is not discounting the chances of 100 basis points. A 100-point increase would be the Fed’s first such action since the early 1980s.
Related: Here is why a 0.75% Fed rate hike could be bullish for Bitcoin and altcoins