The overall financial market is pessimistic this week. Stocks and cryptos are falling as speculation of an upcoming price hike grows. The latest CPI for August was the force pushing the market over the edge.
The figure was higher than expected, increasing fear in the industry. As the Fed prepares to hit the market with a major rate hike, the exchanges are starting to lighten their rich positions. This strategy aims to minimize losses when events occur.
Related Reading: WATCH: Bitcoin’s Bloodline Leads to Inverse Hammer on Monday | BTCUSD September 19, 2022
The position of traders is released according to the market shock
Coinglass has announced the liquidations currently taking place on various exchanges. According to the data application, 130,087 traders saw their positions terminated.
The total amount at the time of writing is $431.51 million. Many Bitcoin and Ethereum crypto traders were further hit by the ongoing frenzy. Bitcoin traders lost $44.5 million of their holdings, while Ethereum traders lost $8.39 million in liquidity.
As we went through the positions, the talls were in the lead, followed by the short holders. According to Coinglass, the ratio between the two is 10X, and the highest liquidation has ever occurred on Oxex.
The data showed that OKEX’s liquidation included $190.41 million in long positions and $9.11 million in short positions.
After Okex, the next exchange with the highest liquidity is Binance. The exchange invested $90.48 million in long positions of $77.49 million and $12.99 million in short positions.
Other top riders in the upset include FTX with long and short positions at $57.59 million and Bitmex at $28.78 million. There are also ByBit and Huobi, $27.86 million and $18.91 million with total liquidity.
Macro factors responsible for market decline
Asset price movements this week have added to the volatility in the crypto market. Many cryptocurrencies are trading in the red, with double-digit declines in the past 24 hours. The fall in prices brought the total market capitalization below $1 trillion.
Analysts attribute the ongoing downward trend to several macroeconomic factors. Most notable was the September 13 CPI data that shocked everyone. The data came in above market expectations, suggesting that inflation is still on the rise.
The result of the data is shown immediately after the release. Number one crypto Bitcoin lost $1000 in minutes. Since then, other crypto assets have started to shed value to the detriment of investors.
Another thing that will push the 4 market down is the integration of Ethereum. After the correction, the price of the crypto dropped to $1300, leading many people to believe that the forecast was overhyped.
Related Reading: Ethereum May Gain 10% Before ETH Reverses
The Fed meeting on September 21 is causing panic in the markets due to higher CPI data. The market is anticipating the next interest rate hike, and analysts are already predicting a rate not seen in 40 years. The federation may move to 100-point after the meeting.
Currently, both stocks and crypto are strongly supported. After September 21st, the market movement is likely to be even scarier than it was today on September 19th.
Featured image from Pixabay and chart from TradingView.com