FOMC

Bitcoin

On June 11, Bitcoin fell 2.5% from its daily high of $69,547 to a low of $66,018. Ether experienced an even larger percentage decline, falling 2.58% to $3,500. The crypto market downturn significantly impacted leveraged trades, wiping out nearly $200 million.
<a href="https://www.coinglass.com/LiquidationData" target="_blank" rel="noopener nofollow">According</a> to data from crypto analytic firm CoinGlass, over the past 24 hours, 83,912 traders were liquidated, with a total liquidation of $190.97 million. The largest single liquidation order happened on OKX, with an ETH/USDT swap value of $5.21 million.
When a trader fails to meet margin requirements or runs out of money to maintain the open position, an exchange will liquidate a leveraged position, resulting in a partial or whole loss of the trader’s initial margin.
<h2 data-ct-non-breakable="true" id="bitcoin-and-ether-leveraged-traders-biggest-losers">Bitcoin and Ether leveraged traders biggest losers</h2>
Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) traders were the biggest losers, with $46.9 million in liquidations in the past 24 hours, of which $36.8 million were long positions and $14.07 million were short trades. 
Ether (<a href="https://cointelegraph.com/ethereum-price">ETH</a>) traders registered the second-largest liquidation with $41.0 million, of which $31.3 million were longs and $9.68 million were shorts.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/a6dc0095-c567-4315-802d-877d1b635ff4.png" alt="" title="">
 <figcaption style="text-align: center;">
 Crypto liquidation. Source: Coinglass
 </figcaption>
</figure>
The liquidation comes just a few days after the crypto market recorded a $400 million liquidation on Friday, June 7.
The recent market correction followed by a bloodbath in the leveraged markets is linked to the upcoming May Consumer Price Index (CPI) report and the Federal Open Market Committee (FOMC) on June 12.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/5f37701e-c196-42c8-9535-03285eef0be8.png" alt="" title="">
 <figcaption style="text-align: center;">
 Liquidation chart. Source: Coinglass
 </figcaption>
</figure>
Related: <a href="https://cointelegraph.com/news/btc-price-risks-60k-bitcoin-bid-liquidity-new-3-dip">BTC price risks $60K dive as Bitcoin bid liquidity thins on new 3% dip</a>
<h2 data-ct-non-breakable="true" id="traders-await-fomc-and-cpi-data">Traders await FOMC and CPI data</h2>
Historically, CPI data releases and FOMC rate changes have had a volatile impact on the crypto market as investors rush to decouple risk. Currently, the 30-day correlation of the crypto market with U.S. equities is at its highest since 2022. 
When the CPI rises, Bitcoin typically declines in price. The digital asset market as a whole is no exception. When people face price increases on necessities, they have less discretionary cash available, thus less money to invest. 
<a href="https://www.business-standard.com/economy/news/us-fed-meeting-decision-inflation-data-to-be-out-today-what-to-expect-124061200351_1.html" target="_blank" rel="noopener nofollow">According</a> to reports, the FOMC is expected to keep the rate unchanged, maintaining the benchmark lending rate of 5.25%–5.50%, while CPI <a href="https://www.morningstar.com/economy/may-cpi-forecasts-show-inflation-softening-overall-gas-prices-ease" target="_blank" rel="noopener nofollow">data</a>&nbsp;is expected to remain in the 0.1% to 0.3% range.
Magazine: <a href="https://cointelegraph.com/magazine/chatgpt-predict-crypto-prices-ai-humane-ai-pin-slammed-knowledge-collapse-ai-eye/">How to get better crypto predictions from ChatGPT, Humane AI pin slammed: AI Eye</a>

Crypto downturn nukes $190M leveraged positions as traders eye CPI data

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Cointelegraph

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