The crypto rally may have ended, as the top cryptocurrencies nosedived over 6% in the last 24 hours.
Although everyone wanted the rally to last just a bit longer, the end may be nigh.
That is, if we look at the 24h data of Bitcoin and Ethereum, the top coins have lost 7% and 6%, respectively. This erases all gains made over the last seven days.
The culprit of this sudden and sharp price drop could be a statement by St. Louis Fed President James Bullard, who came out in favor of a 75 basis point rate hike in September to rein in inflation:
Markets have been betting against the Fed sticking to its campaign to decisively beat back inflation. The S&P 500 has rallied more than 15% off its June lows, bouncing from $3,700 to $4,280 at the time of writing.
Crypto markets have been similarly bullish. Ethereum was the leader during this rally, almost doubling its valuation from the lows of $1,000 to a local high of $2,000 on August 15.
Unsurprisingly, many traders went long and got burned by the dip, leading to the most expensive day for leveraged longs since June.
According to data from Coinglass, more than $400 million in long positions have been liquidated in the last 24 hours: $200 million worth in BTC positions, $140 million in ETH positions, and, in a rare appearance, $25 million in ETC positions, as many traders focused on Merge-related trading dynamics.
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