Crypto Market Selloff: $600 Mln Liquidated BTC, ETH, SOL, XRP, ADA Price Free Fall, Here’s Why

The global crypto market cap fell more than 6% to $1.63 trillion today. Top cryptocurrencies Bitcoin, Ethereum, Solana, XRP, Cardano, and others tumble over 6% in just an hour. BTC price fell 7% to below the $41,000 level in the last 24 hours, erasing earlier gains. On the other hand, Ethereum (ETH) price fell 8% to hit a low of $2,113.

The crypto market saw over $600 million in liquidation in the last 24 hours, with $500 liquidated in just an hour. Coinglass data indicate long positions worth over $561 million were liquidated today, January 3. More than 176K traders were liquidated in the last 24 hours, with the largest single liquidation order on Huobi’s BTCUSDT worth $14.26 million.

CME Bitcoin Futures OI Slips From Record High

CME Bitcoin futures open interest (OI) hit a record high on Wednesday amid spot Bitcoin ETF approval hype and FOMO after recent BTC price rally.

Coinglass on January 3 reported Bitcoin futures open interest (OI) on CME hitting a new high of $5.69 billion. The last time CME Bitcoin futures open interest hit an all-time high was in October 2021 when BTC price was trading above $60,000. In the next two months, BTC price tumbled below $40,000.

Additionally, the total Bitcoin futures OI on all exchanges dropped by 9% to $18.17 billion from $20.23 billion. In the last 4 hours, BTC OI fell by 6% on CME and 16% on Binance. Also, BTC options data indicates that puts are gradually increasing in the last 24 hours, indicating selloff by options traders.

Meanwhile, Matrixport has shaken the crypto community with a bold forecast on Bitcoin price and SEC’s decision on Bitcoin Spot ETF. According to the latest report, the U.S. Securities and Exchange Commission (SEC) is anticipated to reject all Bitcoin spot ETFs in January, potentially triggering a sharp decline in Bitcoin’s value to as much as $36,000.

Macro Makes An Impact

The US Dollar Index (DXY) soars 0.29% to move over 102.50 today. It has continued to rise since last week after hitting a low of 100.99 last week.

Moreover, U.S. Treasury yields rose on Wednesday as investors look for fresh economic data due this week that could provide insights. 10-year Treasury yield jumps to 3.973%, making a rebound in the last few days.

ISM Manufacturing PMI, JOLTS Job openings, and FOMC meeting minutes are due today while the jobs reports and services PMI’s are expected on Friday.

These macro factors are adding additional hindrance to further upside momentum in Bitcoin.

Source