- The crypto market maintained its over $2 trillion capitalization.
- Anticipation about the FOMC and CPI reports have contributed to the crypto decline.
The crypto market has experienced a massive decline in the last 24 hours, with millions of dollars wiped off the market capitalization.
The declines in Bitcoin [BTC] and Ethereum [ETH] have played a significant role in this downturn.
More specifically, the upcoming U.S. Federal Open Market Committee (FOMC) meeting and Consumer Price Index (CPI) reports have contributed largely to the decline of the two biggest crypto assets.
The reason why crypto is down today
AMBCrypto’s analysis of the crypto market capitalization on CoinMarketCap showed a significant decline in the last few days.
In the past 48 hours, the market cap has dropped from over $2.5 trillion to around $2.47 trillion as of this writing.
Also, the liquidation chart on Coinglass showed that crypto liquidations on the 11th of June were quite significant. The chart indicated that long positions experienced more liquidations than short ones as prices sharply declined.
Source: Coinglass
Long liquidation volume was over $221 million, while the short liquidation volume was around $37 million.
Bitcoin, Ethereum lead market dip
Looking at Bitcoin on a daily timeframe showed, AMBCrypto saw that on the 11th of June, it declined by over 3%. The chart indicated that this drop decreased its price to around $67,377.
BTC’s liquidation chart revealed that this decline led to over $66 million in liquidation volume.
Source: TradingView
Specifically, long liquidations accounted for over $52 million, while short liquidations were over $14 million.
Ethereum, in the same timeframe, showed an almost 4.6% decline as its price fell to around $3,500. The liquidation chart showed that over $69 million was liquidated due to the decline.
Of this, long liquidations accounted for around $62 million, while short liquidations were over $7 million.
Source: TradingView
CPI and FOMC causing panic
Historically, when the Consumer Price Index (CPI) data is released or the Federal Open Market Committee (FOMC) adjusts interest rates, the crypto market often experiences significant fluctuations.
This is because investors adjust their risk exposure in response to these economic indicators. Typically, a rise in CPI correlates with a drop in Bitcoin’s price.
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Increases in essential goods reduce the amount of disposable income people have, leading to decreased investment in crypto.
The FOMC is anticipated to maintain the current interest rates between 5.25% and 5.50%. Meanwhile, the CPI is expected to show a modest increase, staying within the range of 0.1% to 0.3%.