The recent drop in the price of BTC has been witnessed while it was unexpected as it was gradually moving upwards
The flagship cryptocurrency has seen the latest monthly low recently alongside the stock. The reasons being seen to be the threats on the crypto market of rate hikes in huge amounts from the Federal Reserves. Since then, hundreds of million dollars worth in liquidations across the crypto market has been set off.
Lately, the top cryptocurrency, bitcoin, and the crypto market have been falling back below the $45,000 mark, which was rather on a bullish run since late March. The reason why it’s being linked to the Fed’s Interest rate hike is the hawkish comment from Lael Brainard, Governor of Federal Reserves. She stated that reducing inflation pressure was a paramount task the previous day.
Bonds and stocks also fell down following those comments as the crypto market, especially bitcoin, held a close correlation in recent times. This Monday, the downtrend continued when bitcoin fell below the $40K mark on 16th March for the first time. At the time of writing, it’s $40,371, which is up from the recent low of $39,373.
The situation has made it too hard for bullish traders to be in the game and maintain a good shape. As per the recent data, more than $438 million has been liquidated across the crypto market in the last 24 hours. The data also reported there were 141,000 traders involved in the liquidation amount, where one of them has lost approx $10 million in his trade.
About $512 million across cryptocurrencies in liquidation occurred among bitcoin traders while against $103 million among traders of Ethereum. Altcoins are down, as is typical, heavily as well. Ethereum, for now, was barely holding about $3000, while Solana was down by approx 12%, although seen some recovery later the day. Additionally, the bitcoin event going down made losses last week, which also exceeded $400 million.
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Source: https://www.thecoinrepublic.com/2022/04/16/the-drop-in-bitcoin-led-to-liquidations-of-439-million/