Over $340 million of long positions were liquidated in the past 24 hours.
Cryptocurrency markets continued to fall on Wednesday morning, hours before the US Federal Reserve announced its interest rate decision.
Bitcoin (BTC) is hovering around $57,000, its lowest since late February, after falling 6% in the past 24 hours.
Ether (ETH) traded as low as $2,820, while Dogecoin (DOGE) fell 8%. Solana (SOL) and Avalanche (AVAX) both suffered losses of about 7%.
CoinGlass reported that over $421 million in crypto futures positions were liquidated in the past 24 hours, of which over $349 million were long. Longing an asset means betting that the price will go up, while shorting means betting that the price will go down.
Markus Thielen, CEO and head analyst at 10x Research, believes Bitcoin could fall to $52,000. “The main reason for the recent rise in Bitcoin prices was the inflow of funds into Bitcoin ETFs, but those funds have been depleted over the past four to five weeks. The inner workings of the market are weakening.” he said. Tweet With X.
Wall Street awaits Fed rate decision
Stock markets fell on Wednesday as investors looked ahead to the Federal Reserve's interest rate policy decisions.
Futures tracking the S&P 500 market index fell 0.51%, while Nasdaq 100 futures fell 0.82%. Dow Jones Industrial Average futures also fell 0.26%.
MicroStrategy (MSTR), the largest corporate holder of Bitcoin, fell 5%. Coinbase (COIN), a major cryptocurrency exchange, suffered a loss of 3.5%.
Mining stocks continue to fall. Riot Platforms (RIOT) and Marathon Digital (MARA) shares fell 3.2% and 3.5%, respectively.
The U.S. central bank will release its interest rate policy statement at 2:00 p.m. Eastern time, followed by Federal Reserve Chairman Jerome Powell speaking at a press conference at 2:30 p.m.
Meanwhile, the Bitcoin and Ether spot ETF that debuted in Hong Kong did not create much buzz on its first day, with trading volume of just over $11 million.
However, given the relatively small size of the Hong Kong ETF market compared to the US, ETF analyst Eric Balchunas said: I got it. “If you localize the numbers, this was big,” Balciunas said.
