Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the impact of the recent drop in Bitcoin which saw around $420 million in long positions liquidated.
Bitcoin Dips
The king of cryptocurrency, Bitcoin, saw its price fall as low as $64,548.57 (according to Coingecko) on Tuesday the 18th of June 2024. The fall off in price saw 190,144 traders get liquidated with the total liquidations coming in at $480.93 million, according to Coinglass data. Out of those liquidations, a total of $420 million were from long positions.
About $372 million in long positions were liquidated on Binance, OKX and HTX, although Bitcoin did manage to recover above $65,700 but began to fall off again and is currently sitting at $64,925. The drop caused a collapse in altcoins following the drop in price of Bitcoin. Ethereum dipped nearly 4% in the 24 hours as it currently trades at $3,397.
Other popular altcoins, such as Solana (SOL), Toncoin (TON), and Cardano (ADA) are all down 8%, 6%, and 8%, respectively. Even the top memecoins have dropped, with Dogecoin (DOGE) is trading at $0.1221 is down nearly 10% in the last 24 hours. With reports last week noting that the federal reserve is planning to retain its benchmark interest rate of 5.25% to 5.5%, which is the highest its been in 23 years, they have cited a requirement of more proof and evidence that the United States is experiencing an inflation cooling.
The government reported a 3.3% annual rise in consumer prices for May, and although it is slightly down from April's 3.4%, it is still modest progress according to the Fed. This is in terms of reducing inflation, but they have noted that prices remain high. The Fed has only one planned cut for 2024, which is lower than the previously forecasted three. Fed Chairman Jerome Powell stated that while the latest Consumer Price Index report is encouraging, more evidence is needed before loosening monetary policy.
Have a great day.
Peace. CryptoGod-1.
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