Bitcoin and Ether faced a setback on June 11, with Bitcoin dropping 2.5% to $66,018 and Ether falling 2.58% to $3,500. The crypto market downturn 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, 83,912 traders were liquidated, totaling $190.97 million. The largest liquidation occurred on OKX, with an ETH/USDT swap value of $5.21 million.
When traders fail to meet margin requirements or run out of funds to maintain their positions, exchanges liquidate their leveraged positions, leading to partial or complete loss of their initial margin.
Bitcoin traders suffered the most losses, with $46.9 million in liquidations, 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 longs and $9.68 million from shorts.
This liquidation event occurred shortly after a $400 million liquidation in the crypto market on June 7. The market correction is 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 seek to mitigate risks. Currently, the 30-day correlation of the crypto market with U.S. equities is at its highest level since 2022.
Rising CPI typically leads to a decline in Bitcoin prices, as well as the wider digital asset market. When essential goods become more expensive, people have less disposable income to invest.
The FOMC is expected to maintain the benchmark lending rate of 5.25%–5.50%, while CPI data is projected to range between 0.1% and 0.3%. Investors are eagerly awaiting these updates as they navigate the volatile crypto market landscape.