Crypto traders are getting hammered with liquidations, with Ethereum (ETH) bulls seeing the worst of it.
According to data from Coinglass, traders have been hit for $448 million in the last 24 hours, with ETH suffering nearly $158 million in liquidations alone.
Bitcoin (BTC), the largest crypto by market cap, has caused nearly $129 million in liquidations during that same period. Ethereum Classic (ETC) has triggered almost $20 million, XRP nearly $10 million and Solana (SOL) has seen nearly $5.5 million during that time.
All the while, the US Dollar Index (DXY), a market gauge indicating the strength of the US dollar versus a basket of other fiat currencies, is approaching a 20-year high. Traditionally speaking, a strong DXY signals weakness in risk-on assets such as cryptocurrency.
Analysts are increasingly concerned about macro factors affecting crypto, such as Benjamin Cowen, who recently warned traders that the stock market could be on the edge of bringing down the crypto markets.
“Certain indices like the NASDAQ and the S&P 500, they are starting to flirt with the idea of going down and at the very least retesting the prior low and potentially putting in a lower low. Now the one thing to consider on this is if Ethereum retests its low – this is really important and this is why I want to make it clear how more volatile assets like Ethereum can really underperform Bitcoin in a bear market – imagine the S&P retests its low and we see that propagated across risk assets. If the S&P retests this low (3,636, points), then Bitcoin is likely to test its own low and Ethereum would likely do the same.”
Bloomberg commodity strategist Mike McGlone also warns that a major correction for the crypto markets is nye.
“Those days of the Fed being there when the stock market goes down are over. We’re going to have to see a major correction. That’s why I think we’re going to get that transition to a severe recession globally. It’s already happening. In the US, deflation… Bitcoin comes out ahead.”
The dip in crypto markets to start the week comes ahead of a Federal Open Market Committee (FOMC) meeting slated for Wednesday, where officials are expected to raise interest rates again.
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