Cryptocurrency Market Liquidation Analysis

The cryptocurrency market faced a notable downturn on June 11, particularly affecting Bitcoin and Ether prices. Bitcoin experienced a 2.5% drop from its daily high to $66,018, while Ether declined by 2.58% to reach $3,500. These downturns led to substantial losses for leveraged traders, amounting to nearly $200 million.

According to data from CoinGlass, over 83,000 traders were liquidated within 24 hours, totaling $190.97 million in liquidations. The largest single liquidation occurred on OKX with a value of $5.21 million.

When traders fail to meet margin requirements or lack sufficient funds to maintain open positions, exchanges liquidate leveraged positions, resulting in partial or full losses of the initial margin.

Bitcoin and Ether Liquidation Impact

Bitcoin traders faced the most significant liquidations totaling $46.9 million in the past 24 hours, with $36.8 million from long positions and $14.07 million from short trades. Ether traders followed closely with $41.0 million in liquidations, comprising $31.3 million from long positions and $9.68 million from short positions.

The recent market liquidation followed a massive $400 million liquidation just days earlier. This downward trend is associated with the upcoming May CPI report and the FOMC meeting scheduled for June 12.

Market Expectations for FOMC and CPI Data

Historically, CPI data releases and FOMC rate changes have triggered volatility in the crypto market as investors look to mitigate risks. Currently, the correlation between the crypto market and U.S. equities is at its highest level since 2022.

A rise in CPI often correlates with a decline in Bitcoin prices, impacting the entire digital asset market. The anticipated FOMC decision is expected to maintain the rate unchanged, while CPI data is forecasted to remain between 0.1% to 0.3%.