Traders of crypto futures lost over $400 million as Bitcoin price dropped below support levels
Wednesday’s figures were the third-highest liquidation losses of this year. Remarks from the Federal Reserve have spooked crypto investors, with leading coins in Bitcoin, Ethereum, and Solana dropping points on the day. At the time of writing, Bitcoin price is changing hands at $43,400.
BTC/USD 4-hour chart | Source: TradingView
Dogecoin, Solana traders, nurse big losses as cryptos see $400M in liquidations, the Bitcoin price dropped
Today’s price action has likely been stirred by broader market fears that the Federal Reserve is eyeing additional interest rate hikes. The key reason for such an aggressive stance? Fighting inflation.
“It is of paramount importance to get inflation down,” said Federal Reserve Governor Lael Brainard in minutes released on Wednesday. “Accordingly, the committee will continue tightening monetary policy methodically through a series of interest-rate increases and by starting to reduce the balance sheet at a rapid pace as soon as our May meeting.”
According to CoinGlass, $356.47 million in closed crypto positions. Of that sum, Bitcoin made up roughly $92.62 million, Ethereum liquidated $64.96 million, and Solana made up $27.04 million over the past 24 hours.
Solana (SOL) and Dogecoin (DOGE) futures contracts saw $40 million in liquidation losses, the most of any significant cryptocurrencies outside of Bitcoin and Ether. Bitcoin futures suffered a $92 million loss, the most of all cryptocurrencies, followed by Ether futures at $64 million. Losses continued Asia time on Thursday, with more than $40 million in liquidations already booked at press time.
Wednesday saw over $400 million in liquidation losses | Source: Coinglass
Most of the liquidations took place on crypto exchange Binance, with more than $133 million in losses. Traders on OKX and FTX had the following highest losses at $100 million and $68 million, respectively.
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