Fear of Rising US Interest Rates Leads to Liquidation of 74,000 Crypto Investors

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Investors continued to steer clear of riskier assets, with the US central bank widely expected to announce a 75 basis point interest rate hike later this week. This caused bitcoin to plummet to the $20,000 level amid rising selling.

In the crypto derivatives market, those who dared paid a heavy price as 73,995 traders were liquidated for the day, bringing the total liquidations to $208.99 million. The largest single liquidation order, worth $1.57 million in ETH-USD-SWAP, took place on Okex.

The price of bitcoin is at a turning point; a sharp increase in either direction could determine the direction of the asset’s trajectory after the FOMC meeting.

Investors are currently undecided, but that should change once it is announced that interest rates will rise as economists predict. Bitcoin holders are cautious ahead of an expected rise.

  • The bitcoin price was recently at $21,100, down about 5% from the previous day. Early Monday (UTC time), bitcoin began to decline as investors again expressed concern over the ability of the Federal Reserve and other central banks to control inflation without plunging the economy into a deep recession. . Since hitting $24,000 last Wednesday and sparking optimism about its bottom, bitcoin has fallen for four straight days.
  • The second-largest cryptocurrency by market capitalization, Ether, was recently trading below $1,500, down more than 8% in the same period and far from its last high near $1,600. . AVAX and MATIC, two other prominent altcoins, which both fell more than 10% at one point, were also swimming in the red.
  • A scandal that is expected to continue to plague the cryptocurrency industry at least for the foreseeable future took another twist on Monday when lawyers for bankrupt crypto lender Voyager Digital called an offer by FTX to provide early cash to Voyager customers, a “low-ball offer disguised as a white knight bailout” that only benefits FTX. This month, Voyager filed for Chapter 11 bankruptcy protection.

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