Following a wave of dread, anxiety, and suspicion throughout the crypto industry, the cryptocurrency market has dropped below $1 trillion for the first time in over a year, with Bitcoin price reaching $22,600.
Due to an uncertain macro climate and the Federal Reserve’s financial tightening measures to combat inflation in the United States, the crypto market has seen a lot of volatility this year and has been in a decline.
Bitcoin, the most popular cryptocurrency, has lost ground in the previous three months as bears seize control of the market’s price action. The global equities market is not immune to the rapid decline, as it too is affected by US economic policies to combat inflation.
Investors anticipating the Fed’s new interest rate rise number, which has become a monthly defining factor for market price action after Friday CPI data hit a fresh 40-year high, drove the latest Bitcoin decline.
The crypto market followed Bitcoin’s lead and took a nasty turn early Monday after prominent loan provider Celsius halted withdrawals, exacerbating macro-driven volatility that had been there since Friday’s US CPI release.
The global cryptocurrency market has lost about $278 billion since Friday’s US CPI report, falling from $1.215 trillion to 937 billion at the time of writing.
Long orders have been liquidated in big numbers as the majority of the crypto market’s prices have plummeted in recent hours. According to coinglass data, long orders constitute 61.2 percent of total liquidations.
In the last 24 hours, 273,336 traders around the cryptosphere liquidated their long orders, bringing the total amount liquidated to over $1 billion.
Bitcoin’s price trajectory is unknown, and there are no clear indications as to what will happen in traditional markets in the coming months, which will have a significant impact on Bitcoin’s trajectory, so keep a watchful eye and manage your portfolio carefully.