Fed Interest Rate Hike Boosts Crypto Market Sell-Offs By Over $330M

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The FOMC meeting held on Wednesday and its subsequent results deeply affected the state of the crypto market. Given the large price swings during and after the meeting, liquidation volumes quickly increased across the market. Tens of thousands of traders have been caught in the crossfire in what has turned out to be the biggest sell-off trend in recent months.

Crypto Liquidations Hit $330 Million

On Wednesday, the Fed announced that it was raising its interest rates by an additional 0.75 points. The move had a direct impact on the crypto market as well as broader macro markets, causing the price of bitcoin to plummet around 8% before a quick recovery.

The the drop triggered massive market sell-offs. As of Thursday, the total crypto market sell-off had topped $330 million, with over 88,000 traders affected. Given the decline, long traders obviously suffered the most, but as the price also saw a strong rally, short traders were also hit hard.

Crypto Market Liquidations

Liquidations cross $330 million | Source: Coinglass

Of the $336 million in liquidations recorded in the last day, 58.96% came from long traders, meaning that $138.13 million came from short liquidations. The largest single liquidation came from the Okex exchange, with a single trade worth $3.13 million on the BTC-USDT-SWAP pair.

Ethereum takes the lead

The focus of late has been on Ethereum after the digital asset successfully transitioned from proof-of-work to proof-of-stake. This increased attention has also amplified the performance of the cryptocurrency and its traders lately.

ETH liquidations accounted for nearly half of the $336 million in liquidations recorded in the crypto market over a 24-hour period. With 117.73K ETH liquidated, it amounted to a dollar value of $151.45 million during this time.

Total Crypto Market Cap Chart from TradingView.com

Market cap at $884 billion | Source: Crypto Total Market Cap on TradingView.com

In contrast, the major cryptocurrency, Bitcoin, saw a total of 5.50K BTC liquidated during this period for a total of $105.31 million. This means that the liquidation volumes of ETH are about 50% higher than those of BTC.

XRP was another token that saw massive liquidations, although to a lesser extent than bitcoin and Ethereum. XRP recorded a volume of $9.77 million, while SOL and ETC reached $6.73 million and $5.61 million respectively. All other cryptocurrencies saw liquidation volumes below $5 million.

Featured image from The World Economic Forum, chart from TradingView.com

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