Bitcoin and Ether experienced a significant drop on June 11, with Bitcoin falling 2.5% to $66,018 from its daily high of $69,547, and Ether dropping 2.58% to $3,500. The market downturn had a major impact on leveraged trades, resulting in liquidations totaling nearly $200 million.
Data from CoinGlass revealed that in the last 24 hours, 83,912 traders were liquidated, amounting to $190.97 million. The largest liquidation order occurred on OKX, with an ETH/USDT swap value of $5.21 million.
When traders fail to meet margin requirements or run out of funds to support their open position, exchanges liquidate their leveraged positions, leading to partial or complete loss of their initial margin.
Bitcoin traders suffered the most losses, with $46.9 million in liquidations, including $36.8 million from long positions and $14.07 million from short trades. Ether traders followed with $41.0 million in liquidations, with $31.3 million from longs and $9.68 million from shorts.
This liquidation event occurred shortly after a $400 million liquidation in the crypto market on June 7. The market correction and subsequent bloodbath in leveraged markets were attributed to the upcoming May Consumer Price Index (CPI) report and the Federal Open Market Committee (FOMC) meeting on June 12.
Historically, CPI data releases and FOMC rate changes have caused volatility in the crypto market as investors seek to manage risk. The 30-day correlation between the crypto market and U.S. equities is currently at its highest level since 2022.
Rising CPI typically leads to a decline in Bitcoin prices, as seen in the recent market activity. The FOMC is expected to maintain the benchmark lending rate of 5.25%–5.50%, while CPI data is projected to remain within the 0.1% to 0.3% range.
Traders are eagerly awaiting the outcomes of the FOMC meeting and CPI data to gauge the market’s future direction.