The cryptocurrency market has experienced a significant sell-off over the past two days, leading to a surge in liquidations. According to price data from "The Block", Bitcoin (BTC) fell 3.5% to $67,275 in the past 24 hours; Ethereum (ETH) fell 4.6% to $3,495.
According to data from CoinGlass, in the past 24 hours, the sell-off in the crypto market has resulted in the liquidation of approximately $270.4 million in leveraged positions, of which long positions accounted for the majority, approximately $238 million.
As was the case with the broader market, the Ethereum contract had the highest liquidation amount at $70.5 million, of which $64.6 million was long positions. Following closely behind is Bitcoin at $68.88 million. The exchange with the highest amount of liquidated positions was Binance, which liquidated $99.7 million as of press time.
The U.S. will release two macroeconomic reports on Wednesday: the monthly consumer price index report and the Federal Reserve's monetary policy statement, and the market is in decline ahead of the release of these two data.
Luuk Strijers, CEO of cryptocurrency options exchange Deribit, said in an interview with The Block earlier on Tuesday that Bitcoin’s correlation with risk assets is higher than usual. He said:
“Until the economic outlook becomes clearer, traders are likely to be more conservative, possibly reducing exposure or using options strategies to hedge. Bitcoin and Ethereum’s implied volatility is declining across the curve, despite this Short-term uncertainty, but basis yields and call slopes remain high across all listed maturities.”
