Crypto Market Weakens Again, More Than IDR 1.3 Trillion Liquidated In 1 Hour

The crypto market has weakened again. (Photo; Doc. Unsplash)

JAKARTA - Crypto market players around the world must face difficult moments when the market weakens as a whole. Massive liquidation worth more than 90 million US dollars (Rp1.3 trillion) occurs in one hour, and reaches 150 million US dollars (Rp2.2 trillion) in the last 24 hours.

The impact is quite significant, as seen from the decline in Bitcoin prices by 3%, BTC has dropped to the level of IDR 435 million per coin. Then crypto number two, Ethereum(ETH), has decreased more than 2%, down to IDR 27 million in the last 24 hour period.

According to a Coinclass data report, more than 50 thousand traders have been liquidated in the last 24 hours. The largest single liquidation occurred in the swapBTC/USDT on the OKX crypto exchange with a value of 2.57 million US dollars (IDR 38.5 billion). This situation has not only had an impact on crypto exchanges, but has also triggered a decline in the global crypto market by 2.3%, touching the total market figure of 1.17 trillion US dollars (IDR 17.5 quadrillion) in the last 24 hours.

One of the factors believed to trigger massive liquidation is the launch of the Worldcoin (WLD) token by the ChatGPT founder, Sam Altman. Major crypto bursts, such as Binance, OKX, Huobi, Bybit, and others, have traded these tokens and attracted traders to try WLD trading.

In addition, the phenomenon of the outflow of crypto asset funds occurred in the first week after four weeks earlier there was an inflow with a value of more than 500 million US dollars (Rp7.5 trillion). The main reason behind this sell-off is allegedly related to macroeconomic factors.

According to a Coingape report, government bond yields worldwide, including yields from 10-year US government bonds, fell to 3.81%. Concerns about the global economic slowdown and possible recession are one of the causes of the decline. In addition, traders are also looking forward to important interest rate decisions from the US Federal Reserve, ECB, and the Bank of Japan.

Meanwhile, the CME FedWatch Tool recorded a 99.8% probability for an interest rate increase of 25 bps by FOMC on July 26. This means that the benchmark interest rate can reach the range of 525-550. The sharp increase in the US Dollar Index (DXY) to 101.25 also had an impact on the price corrections of Bitcoin and Ethereum.

A number of important decisions related to interest rates and the global economic situation are claimed to have contributed to the volatility in the crypto market. Although this act of selling the grid raises questions for many investors, this situation can also be an opportunity to conduct a more in-depth analysis before entering the digital asset market.