Liquidations jump to $547 million as oil rally hits crypto market
A surge in oil prices has triggered a broad sell-off in the crypto market, resulting in $547 million in liquidations over 24 hours. While major tokens like Ethereum saw significant losses, traders are now shifting focus to upcoming Federal Reserve meeting minutes for clues on future interest rate policy.
Why it matters
The correlation between traditional commodity markets and crypto volatility highlights the increasing sensitivity of digital assets to macroeconomic shifts.
The damage grew heavier further down the market, as the CoinDesk 80, which tracks a wide basket of smaller tokens, lost nearly 4% over the past 24 hours, against 2.5% for the CoinDesk 5. DeFi tokens fell almost 6% while the Memecoin Index tumbled by around 5%. Only a handful of tokens including SAND, PUMP and STX have managed to rise since midnight UTC.
Liquidations climbed 235% to $547 million over the past 24 hours, according to CoinGlass. Ether ETH $2,578.81 positions accounted for $174 million of that as it trades at $2,600 having lost 3.5% since midnight.
Demand from U.S. spot bitcoin ETFs had held up going into the drop. The funds took in $119 million on Tuesday, according to SoSoValue, their fourth day of inflows in the last five sessions.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in