Crypto Market Crash Wipes Out $335M in Longs
Crypto prices plunge ahead of CPI data, liquidating $335M in longs as fear grips the market.
- $335M in long positions liquidated amid market drop
- Bitcoin and Ethereum prices fall sharply
- Traders cautious ahead of CPI and Fed outlook
The crypto market is experiencing a sharp downturn, with over $335 million in long positions liquidated in just 24 hours. The total market liquidations reached $414 million, showing just how volatile investor sentiment has become. This crash comes on the heels of hawkish comments from the U.S. Federal Reserve, which has hinted at a longer-than-expected period of high interest rates to combat inflation.
With inflation data (CPI) expected on November 14, traders are playing it safe, preferring to wait and see how the macroeconomic landscape develops. This has intensified the selling pressure across the board.
Bitcoin and Ethereum Lead the Decline
Leading cryptocurrencies are not immune to the drop. Bitcoin (BTC) fell by 1.7%, trading at around $103,392, while Ethereum (ETH) dropped even more sharply, down 3.3% to $3,443. These declines reflect growing caution in the market and a wider pullback from riskier assets.
The Fear & Greed Index (FGI) has plummeted to 24, placing the market firmly in the “Extreme Fear” zone. This suggests that many traders are either exiting positions or staying on the sidelines until there’s more clarity from the economic data.
Caution Dominates Ahead of CPI Report
With the CPI release looming, the uncertainty around inflation and Fed policy is keeping market participants on edge. A higher-than-expected inflation number could further solidify the Fed’s hawkish stance, potentially leading to more pain for crypto assets.
The overall crypto market cap now sits at $3.68 trillion, a significant drop from earlier highs. Until the CPI data is out and the Fed provides clearer signals, the market is likely to remain in a state of fear and heightened volatility.
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