Bitcoin and Ether both experienced a decline on June 11, with Bitcoin falling 2.5% from its daily high of $69,547 to a low of $66,018, and Ether dropping 2.58% to $3,500. This downturn in the crypto market had a significant impact on leveraged trades, resulting in nearly $200 million being wiped out.
Data from CoinGlass revealed that in the past 24 hours, a total of 83,912 traders were liquidated, amounting to $190.97 million. The largest liquidation order occurred on OKX, with an ETH/USDT swap value of $5.21 million.
When a trader is unable to meet margin requirements or runs out of funds to maintain an open position, an exchange will liquidate the leveraged position, leading to a partial or complete loss of the trader’s initial margin.
Bitcoin traders suffered the most losses, with $46.9 million in liquidations in the past day, including $36.8 million from long positions and $14.07 million from short trades. Ether traders followed closely behind with $41.0 million in liquidations, with $31.3 million from long positions and $9.68 million from short positions.
This recent liquidation event comes shortly after a $400 million liquidation on June 7. The market correction and subsequent bloodbath in the leveraged markets are believed to be linked to the upcoming May Consumer Price Index (CPI) report and the Federal Open Market Committee (FOMC) meeting on June 12.
Historically, CPI data releases and FOMC rate changes have caused volatility in the crypto market as investors attempt to mitigate risk. Currently, the 30-day correlation between the crypto market and U.S. equities is at its highest level since 2022.
Typically, when the CPI rises, Bitcoin prices tend to fall, as seen in the recent market correction. The FOMC is expected to maintain the benchmark lending rate of 5.25%-5.50%, while CPI data is projected to remain within the 0.1% to 0.3% range.
Traders are awaiting further developments from the FOMC meeting and CPI data to determine the future direction of the crypto market.