The cryptocurrency market turmoil has continued growing even in the third week of September. Even now, the cryptocurrency market is facing a huge downtrend and this time, the situation is even worse.
The crypto market has again lost a major chunk of liquidity on the platform because of constant pressure building by macroeconomic factors.
Even in the past 24 hours, the situation in the cryptocurrency industry has continued to get even worse. The downtrend recorded in the cryptocurrency industry is double-digit in the past 24 hours.
Cryptocurrency Industry Loses Almost Half a Billion
With the cryptocurrency industry moving in the bearish zone in the past 24 hours, liquidation has also picked up the pace. In the mentioned period, the crypto industry has witnessed a liquidation of almost half a billion.
The Coinglass data has revealed that in the particular period 130,087 traders proceeded with liquidation. Their overall liquidation translated to $431.51 million.
The leverage traders of Bitcoin (BTC) experienced a loss of $44.5 million. The Ether (ETH) leverage traders witnessed a liquidation worth $8.39 million.
The major portion of losses was recorded for the long traders. The data from the cryptocurrency exchanges showed that the amount lost by the long traders compared to the short traders was 10X more.
Current Market Downtrend
According to crypto market analysts and experts, multiple macroeconomic factors seem to have caused the recent downfall in the crypto-verse.
One of the major factors leading to the crypto sector’s major downfall is the consumer price index (CPI) data that the US Feds have recently shared with everyone.
The data was shared by the Feds on September 13, revealing that there is still time for the inflation rates to cool off.
Just as the CPI data was shared, the value of Bitcoin recorded a $1,000 dip in a matter of hours. Last weekend, the trading price of Bitcoin recorded a slight upsurge.
This meant that the buyers were again coming into action but on Monday, the cryptocurrency industry recorded yet another major downfall. In the early hours of Monday, the cryptocurrency industry recorded a major bloodbath.
Major Rise in Inflation Rates
The meeting of the Feds to discuss the inflation rates and interest rate hikes is due on September 21. On a particular day, the feds may hike the interest rates by 75 bps. This would be the highest interest rate hike in 40 years.
The Feds had recently hinted that they would need to hike the interest rates in order to control the rising inflation rates. There is another possibility that the Feds may discuss a 100 bps rise in the interest rates to bring the inflation rates under control.
This could mean that the cryptocurrency industry may lose even more value in the upcoming days as the interest rate condition keeps worsening.