Bitcoin, Ethereum Nosedive: $445M Liquidated From Crypto Market – Bitcoin (BTC/USD), Ethereum (ETH/USD)
Investors have liquidated more than $445 million from the cryptocurrency market in the past 24 hours. This happened after the biggest digital currencies of Bitcoin BTC/USD and Ethereum ETH/USD fell to new lows over the weekend and traded significantly lower on Monday compared to the previous week.
The market capitalization of the cryptocurrency market is currently $928 billion.
Bitcoin is losing steam
Bitcoin is currently trading at $19,100, down 14% over the past week and down around 4% over the past 24 hours.
The world’s largest cryptocurrency is now down a staggering 75% from its all-time high in November 2021 when its market cap was $1.27 trillion. It is now down to $366 billion.
According to Blockchain.com, the network difficulty of Bitcoin hit an all-time high of 32,045t on Sunday.
The computational difficulty involved in mining a block is denoted by the term “network difficulty.”
Higher difficulty requires more processing power and has a significant negative impact on the profitability of miners, lowering the price of the currency.
Ethereum follows suit
The world’s second largest crypto ethereum is down a whopping 22% in the past week and is currently trading at $1,345 levels, down more than 5% in the last 24 hours.
Ethereum is down about 75% from its all-time high of $4,891.7 recorded in November 2021.
The market cap of Ethereum is currently $164.5 billion.
445 million dollars liquidated
According to statistics from Coinglass, more than $445 million from over 133,760 traders have been liquidated in the crypto market in the last 24 hours amid bearish sentiments.
About $380 million, or 87%, of the $445 million in liquidated assets were long positions, reflecting negative market sentiment.
Ethereum witnessed the largest liquidation at $173 million, followed by Bitcoin at $121 million.
Fed Hike spooked the market
The possibility of the Fed raising interest rates later this week is probably the reason for the market’s unfavorable price response.
According to Reuters, given August’s alarming inflation data, a rise of 100 basis points is not out of the question, with the majority expecting a rise of 50 to 75 basis points.
According to CoinMarketCap, several other prominent cryptocurrencies have seen significant losses over the past 24 hours, including Cardano ADA/USD down 10%, Shiba Inu SHIB/USD down 10%, Avalanche AVAX/USD down 10% and Polka dot DOT/USD down 12%.
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