Key Points
- The price of Bitcoin (BTC) has dropped sharply, leading to crypto trader liquidations worth over $661 million in 24 hours.
- Market capitalization of crypto has decreased by 7.3%, with about $175 billion leaving the space.
The sudden drop in the price of Bitcoin (BTC) has led to more than $661 million worth of crypto trader liquidations in the last day, impacting nearly 200,000 traders.
On March 15, Bitcoin’s value fell 7.5% within a few hours, from $72,000 to $66,500. The digital asset managed to recover slightly, regaining the $68,000 mark, before falling further to around $67,500.
Details of the Liquidation
The majority of the liquidations, 80% of them, were long positions, equating to $525.2 million in liquidations over the past day. Short position liquidations amounted to $136.5 million. The total market capitalization of crypto has fallen by 7.3% to $2.68 trillion as around $175 billion exited the market.
Crypto derivatives tooling provider Greeks Live noted a “recent change in market tempo” on March 14. They suggested that the current trend of ETF inflows might be reversing.
Market Predictions
Pav Hundal, Lead Analyst at Australian crypto exchange Swyftx, suggested that a correction back into the low $60,000 or high $50,000 level could occur if ETF volumes continue to decline. He pointed out that Bitcoin ETF inflow volumes were down 48% on their 14-day average.
The recent drop has also eliminated most of the open interest in derivatives markets. Some predict that BTC could fall to around $63,000 to $64,000.
Economic data released in the United States this week may have accelerated the declines. Fresh Producer Price Index (PPI) data exceeding expectations fueled projections for prolonged high rates from the Federal Reserve. Additionally, hotter-than-expected Consumer Price Index (CPI) data is believed to have worsened America’s economic situation. Asian stock markets also pulled back after the U.S. economic data dashed hopes for lower interest rates.
