In summary
- The Cryptocurrency market saw widespread losses, with Dogecoin and Cardano leading the declines, while Solana and XRP also suffered significant declines in the last 24 hours.
- Liquidations totaled $691 million, with Bitcoin being the hardest hit, with approximately $150 million in long liquidations, including a $4.67 million loss by a whale on Binance.
- Traders are preparing for key economic data from the FOMC minutes and PCE index, which could influence expectations for future rate cuts and increase market volatility.
The cryptocurrency market is having a rough week, with all of the top 50 cryptocurrencies, except for stablecoins, posting losses overnight.
Of the top 10 cryptocurrencies by market capitalization, Dogecoin (DOGE) and Cardano (ADA) have taken the biggest hits, while Solana (SOL) and XRP have also fallen by double digits in the last 24 hours, according to data from CoinGecko.
In the last day, Dogecoin fell 12% to $0.37 while Cardano fell 14.7% to $0.90. Solana fell 10% to $227, while XRP fell 10.7% to $1.33.
Bitcoin (BTC) was not spared either, falling 6.1% to $92,362, while Ethereum was down 4.5% to $3,324.
“The market had become extremely overbought since the election with excessive leverage, making a pause inevitable,” QCP Capital said in its most recent broadcast.
Bitcoin’s drop, in particular, is said to have coincided with the end of a five-day streak for spot ETFs in terms of net inflows, according to QCP Capital. Outflows totaling $435 million were recorded on Monday, according to data from Farside Investors.
Liquidation data from CoinGlass shows more than $691 million wiped out across more than 180,000 positions. Bitcoin traders felt the most pain with roughly $150 million in long liquidations, but the real drama came from a single whale on Binance that lost $4.67 million in one go when its long position was wiped out.
What’s next: FOMC minutes, PCE data
Two key macroeconomic indicators will be released one after the other starting this Tuesday evening. QCP Capital notes that concerns about downside risks “could intensify” as this data is released.
First up are the minutes of the Federal Reserve’s November meeting. The last Fed meeting concluded with a rate cut that everyone expected, although they changed the way they talk about inflation and their overall goals. Powell kept his comments relatively dovish, basically saying the economy is doing well but that they would remain flexible with future decisions.
Next up is the PCE data release ahead of Wednesday’s Thanksgiving Day, which looks like it could show a slight rise in inflation, based on other recent numbers. Traders are somewhat divided on whether there will be another rate cut by December, with just over half betting it will happen, although as usual it will all depend on what the economic numbers tell us.
At least for now, consensus views last week’s momentary pause as a healthy correction rather than the start of a longer downtrend.
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