Key Points
- The cryptocurrency market has seen a significant drop, largely influenced by the upcoming FOMC meeting and CPI reports.
- Bitcoin and Ethereum have led the market dip, with millions of dollars liquidated in the past 24 hours.
The cryptocurrency market has seen a substantial decrease in the past day, resulting in millions of dollars being wiped from the market capitalization.
This downturn has been mainly driven by declines in Bitcoin (BTC) and Ethereum (ETH).
The Crypto Decline
The upcoming U.S. Federal Open Market Committee (FOMC) meeting and Consumer Price Index (CPI) reports have largely contributed to the decline of these two major crypto assets.
Analysis of the cryptocurrency market capitalization on CoinMarketCap has shown a significant drop in the past few days.
The market cap has fallen from over $2.5 trillion to around $2.47 trillion within the last 48 hours.
Furthermore, the liquidation chart on Coinglass shows that cryptocurrency liquidations on June 11th were quite significant, with long positions experiencing more liquidations than short ones as prices sharply dropped.
Bitcoin and Ethereum’s Role
On June 11th, Bitcoin declined by over 3%, which brought down its price to around $67,377.
This drop led to over $66 million in liquidation volume, with long liquidations accounting for over $52 million and short liquidations over $14 million.
Similarly, Ethereum showed an almost 4.6% decline as its price fell to around $3,500, leading to over $69 million being liquidated.
The upcoming CPI data release and FOMC interest rate adjustments often cause significant fluctuations in the crypto market.
Investors adjust their risk exposure in response to these economic indicators, with a rise in CPI often correlating with a drop in Bitcoin’s price.
Increases in essential goods reduce the amount of disposable income people have, resulting in decreased investment in crypto.
The FOMC is expected to maintain the current interest rates between 5.25% and 5.50%, while the CPI is expected to show a modest increase, staying within the range of 0.1% to 0.3%.
