Over $250 Million in Liquidations as Bitcoin, Ethereum Slip

Bitcoin and Ethereum are currently experiencing a downward trend in their value. This has resulted in over $250 million in liquidations as investors and traders scramble to sell their holdings. The cryptocurrency market has been volatile in recent months, with fluctuations in value causing anxiety among investors. As the price of Bitcoin and Ethereum continue to slip, it remains to be seen how it will impact the overall market. Nevertheless, investors are advised to monitor the situation closely and make informed decisions to protect their investments.

Bitcoin and Ethereum witnessed a sudden dip in their price on Wednesday morning, with Bitcoin dropping by more than 4.5% and reaching new weekly lows of $29,158, according to data from CoinGecko. At present, it is trading at around $29,275, down over 2% on the day. Ethereum also took a plunge, breaking below its $2,000 psychological level and currently trading at $1,975, down 6% in the last 24 hours. The total market capitalization of all cryptocurrencies fell at a similar pace with Bitcoin, dropping by 3.7% over the last 24 hours to $1.27 trillion.

While there were no immediate catalysts to explain the price crash, gold also experienced a 1.57% drop around the same period, suggesting that the declines may be correlated. On April 14, the U.S. Federal Reserve leaned toward another 25 basis point hike in its upcoming May policy rate meeting, strengthening the U.S. dollar and putting pressure on gold and Bitcoin.

The news restricted a crypto market uptrend during the weekend, as Bitcoin’s price dropped to lows of $29,380 on Monday. While there was a brief recovery above $30,000 the following day, a simultaneous drop in gold and Bitcoin suggests that the market may still be attempting to price the interest rate hike.

The price drop caused a total of $250 million in liquidations across the entire crypto market over the past 24 hours, with the majority of the orders being long, according to Coinglass data. Bitcoin, Ethereum, Dogecoin, and XRP accounted for over 40% of the liquidated amount, with the rest of the liquidations distributed across the entire market.

It is important to stay up-to-date with the latest crypto news as the market can be highly volatile, especially with sudden price fluctuations like the one witnessed recently. Stay informed and subscribe to daily updates in your inbox.

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