The liquidation comes just a few days after the crypto market recorded a $400 million liquidation on Friday, June 7.

On June 11, Bitcoin and Ether experienced significant price declines, leading to substantial losses for leveraged traders in the cryptocurrency market. Bitcoin dropped by 2.5% from a high of $69,547 to a low of $66,018, while Ether fell by 2.58% to $3,500. This downturn resulted in nearly $200 million in liquidations over the past 24 hours.

Key Points:

1. Market Downturn and Liquidations:
- Bitcoin fell 2.5%, and Ether declined by 2.58%, significantly impacting leveraged trades.
- According to CoinGlass, 83,912 traders were liquidated, with a total liquidation value of $190.97 million.
- The largest single liquidation order was an ETH/USDT swap worth $5.21 million on OKX.

2. Impact on Traders:
- Bitcoin traders faced the biggest losses, with $46.9 million in liquidations, including $36.8 million in long positions and $14.07 million in short trades.
- Ether traders experienced $41.0 million in liquidations, with $31.3 million in long positions and $9.68 million in short trades.

3. Context of Liquidations:
- The recent liquidation followed a $400 million liquidation event on June 7.
- Market corrections are attributed to the upcoming May Consumer Price Index (CPI) report and the Federal Open Market Committee (FOMC) meeting on June 12.

4. Impact of Economic Data:
- Historical trends show CPI data releases and FOMC rate changes cause volatility in the crypto market.
- A rise in CPI typically leads to a decline in Bitcoin prices as investors have less discretionary cash available for investment.
- Reports suggest the FOMC is expected to keep the benchmark lending rate unchanged at 5.25%-5.50%, and CPI data is anticipated to remain in the 0.1%-0.3% range.

Implications:

1. Market Volatility:
- The crypto market remains highly sensitive to economic data and regulatory decisions.
- Traders should be prepared for potential volatility around key economic announcements.

2. Leveraged Trading Risks:
- Leveraged trading can result in significant losses, especially during market corrections.
- Traders should be cautious and consider the risks involved in using leverage.

3. Economic Indicators:
- Investors need to closely monitor CPI and FOMC updates, as these indicators can heavily influence market sentiment and price movements.
- Understanding the correlation between the crypto market and traditional financial markets can help in making informed trading decisions.

Conclusion:

The recent decline in Bitcoin and Ether prices has led to substantial liquidations in the crypto market, highlighting the risks associated with leveraged trading. As economic indicators like CPI and FOMC decisions continue to play a significant role in market dynamics, traders must remain vigilant and prepared for potential volatility.