The global crypto industry continued its decline on Thursday as Bitcoin (BTC) is struggling to hold the $57,000 price level. The ongoing sell off had already hurt crypto bulls and suggested that there is still more pain left ahead.
Crypto longs see heavy liquidations
As per the data shared by Coinglass, more than 97,811 traders were liquidated in the last 24 hours. The total liquidations, including both long and short positions, breached the $350 million mark. The single largest order recorded by the tracker happened on the crypto exchange OKX of BTC-USDT-SWAP, valued at $6.57 million.
Data shows that 70% of all bets liquidated in the last 24 hours turn out to be long positions. These positions were valued at around $251 million. This suggests that the crypto community was still bullish on the market reversal. However, the crypto market dropped by more than 3% over the last day. The total digital assets market cap stood at $2.16 trillion.
It is important to note that the shorters also bleed in the recent fluctuations recorded over the trading day. Data shows that $103 million worth of short bets got liquidated in the same session. This might present a confused picture of the market right now.
Source: Coinglass
The ongoing decline has dragged Bitcoin to plunge by over 10% in the last 7 days, while, It dropped by another 3% in the past 24 hours. The original crypto is trading at an average price of $57,787, at the press time. However, It hovered around the $56K-$59K price levels all day long.
BTC’s 24 hour trading volume is up by 18% to stand at $47.2 billion. It is still holding a market cap of $1.13 trillion with a gain of 36% on the year to date (YTD) basis.
Wassup with FED?
The recent decision taken by the Federal Open Market Committee (FOMC) to leave US interest rates unchanged and maintain them within a range of 5.25% to 5.50% since July 2023, has sparked mixed reactions within the crypto community.
While unchanged rates would typically be celebrated news, many in the crypto space were hoping for interest rate cuts to boost equity market caps.
Fed Chair Jerome Powell indicated that the Fed prefers to keep rates unchanged until inflation drops back down to 2%. While this decision may lead to some relief bounces in crypto prices, the correlation between crypto market caps and traditional markets will likely benefit when the US sees positive news in this regard.