The cryptocurrency market witnessed a notable downturn, precipitating the liquidation of leveraged positions totaling approximately $190 million, as traders awaited the release of crucial economic indicators.

Following a substantial $400 million liquidation mere days ago, Bitcoin experienced a 2.5% decline on June 11, dipping from a daily high of $69,547 to a low of $66,018. Ether, meanwhile, faced a more pronounced drop, falling by 2.58% to $3,500. This downturn had a significant impact on leveraged trades, resulting in liquidations approaching the $200 million mark.

According to data from crypto analytic firm CoinGlass, over the past 24 hours, a total of 83,912 traders found themselves liquidated, with losses totaling $190.97 million. The largest single liquidation order occurred on OKX, amounting to $5.21 million in the ETH-USDT-SWAP pair.

Leveraged positions are liquidated when traders fail to meet margin requirements or exhaust funds to maintain open positions. Exchanges then execute liquidations, leading to partial or complete loss of the trader’s initial margin.

Among affected traders, those holding Bitcoin experienced the most substantial losses, with $46.9 million in liquidations over the past 24 hours. Of this amount, $36.8 million stemmed from long positions, with the remaining $14.07 million from short trades. Ether traders were next in line, with $41.0 million in liquidations, including $31.3 million from long positions and $9.68 million from short positions.

The recent market correction and ensuing leveraged liquidations are closely tied to the impending release of the May Consumer Price Index (CPI) report and the Federal Open Market Committee (FOMC) meeting on June 12.

Historically, CPI data releases and FOMC rate changes have had a volatile impact on the crypto market, prompting investors to hedge against risk. Currently, the 30-day correlation between the crypto market and U.S. equities stands at its highest level since 2022.

Bitcoin prices typically exhibit a decline when CPI rises, reflecting broader market sentiments. Rising prices on essential goods can limit individuals' discretionary spending, affecting asset prices across various sectors.

Reports indicate that the FOMC is likely to maintain the benchmark lending rate unchanged at 5.25-5.50%, while CPI data is anticipated to remain within the range of 0.1%-0.3%. As these key economic indicators are awaited, traders remain vigilant, adjusting their positions in anticipation of market reactions.