The cryptocurrency market has undergone a significant selloff in the past two days, marking a notable shift in sentiment among investors and traders. The sell-off, which has led to a downturn in prices across major cryptocurrencies, has resulted in a surge of liquidations across leveraged positions.

Bitcoin (BTC), the cornerstone of the crypto market, experienced a 3.5% decline over the past 24 hours, trading at $67,275, according to data from The Block’s bitcoin price tracker. Meanwhile, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, saw a more pronounced drop of 4.6%, with its price dipping to $3,495.

This downward movement in prices has triggered approximately $270.4 million in liquidations within the leveraged trading landscape over the last 24 hours, as reported by CoinGlass. Of this total, a significant portion amounting to $238 million came from long positions.

In line with the broader market trend, Ethereum witnessed the highest level of liquidations, totaling $70.5 million, with the majority ($64.6 million) originating from long positions. Bitcoin followed closely behind with $68.88 million in liquidations. Notably, Binance emerged as the top exchange experiencing liquidations, with approximately $99.7 million at the time of publication.

The Global Market Cap Index 30 (GMCI 30), which monitors the performance of the 30 largest cryptocurrencies, also experienced a notable decline, dropping by 4.6% to 135.58 — its lowest level since May 20.

Investors and traders are now closely monitoring the upcoming release of two significant macroeconomic reports scheduled for Wednesday: the monthly Consumer Price Index (CPI) report and a Federal Reserve monetary policy announcement. These releases are expected to provide insights into inflation trends and potential changes in interest rates, which could have a significant impact on market sentiment.

According to Deribit CEO Luuk Strijers, bitcoin appears to be more correlated with risk assets than usual amidst the current market turbulence. He suggested that traders may adopt a more conservative approach, potentially reducing their exposure or employing option strategies to hedge their positions until there is greater clarity on the economic outlook.

"Implied Volatility has dropped across the curve for bitcoin and ether. Despite this short-term uncertainty, the basis yields and call skew remains high, for all listed expiries," Strijers noted, emphasizing the persisting volatility in the cryptocurrency derivatives market despite the overall market downturn.

As investors navigate through the market uncertainty, the resilience and adaptability of cryptocurrencies will be put to the test, with market participants closely monitoring developments in both traditional and digital asset markets.