Over $250 million in liquidations like Bitcoin, Ethereum Slip

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Bitcoin price fell more than 4.5% on Wednesday morning in a matter of hours, hitting new weekly lows of $29,158, according to data from CoinGecko. Currently, Bitcoin is trading at around $29,275, down more than 2% on the day.

The total market capitalization of all cryptocurrencies fell at a similar pace with Bitcoin, dropping 3.7% in the past 24 hours to $1.27 trillion. Ethereum (ETH) also broke above its psychological level of $2,000 and is currently down 6% in the last 24 hours, trading at $1,975.

While there were no immediate catalysts to explain the price drop, gold also saw a 1.57% drop around the same time frame, suggesting the declines may be correlated.

BTC/USD (top) and hourly gold price chart. Source: commercial view

On April 14, the US Federal Reserve looked for another 25 basis point hike at its next policy rate meeting in May, strengthening the dollar and putting pressure on gold and Bitcoin.

The news capped an uptrend in the crypto market over the weekend, as the price of Bitcoin fell to a low of $29,380 on Monday. Although there was a brief rally above $30,000 the following day, a simultaneous drop in gold and Bitcoin suggests that the market may still be trying to price the rate hike higher. interest.

The price drop has caused a total of $250 million in liquidations across the entire crypto market in the past 24 hours, with the majority of orders going long, according to data from Coinglass. Bitcoin, Ethereum, Dogecoin, and XRP accounted for more than 40% of the liquidated amount, with the rest of the liquidations spread across the broader market.

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