The crypto market sank from $2.170 trillion to $2.059 trillion in less than 24 hours according to CoinMarketCap in the face of rising fears that current geopolitical tensions and soaring inflation could be stretched or become worse than expected.
Without a rapid rise in interest rates above existing plans, Agustín Carstens, the chairman of the Basel-based Bank for International Settlements – also known as the central bank of central banks – said there was a strong risk that costs would rise uncontrollably.
Carstens warned in a speech outlining the risks of persistently increasing inflation rates that higher borrowing costs may be required for several years to prevent spiraling prices from causing long-term damage to the industrialized world’s economies.
In the last 24 hours, the crypto market has seen $350M in liquidations – 117,196 crypto traders have been liquidated with the largest single liquidation happening on Bybit according to Coinglass.
BTCUSD Chart by TradingView
Bitcoin continues to lead in the liquidation onslaught with over $77 million. BTC Price is currently trading at $44,797, down 34.86% from its all-time high. Ethereum has likewise taken a hit and is trading at $3,314, down 6.42% since today’s opening and 32.51% from multi-year highs.
Other coins are also feeling the heat with Cardano (ADA), Solana (SOL), Avalanche (AVAX), and Terra (LUNA) shedding 8.2%, 8.89%, 9.41%, and 5.25% respectively in the past 24 hours.
That said, this continues to be a closely watched week by traders who now await for markets to cool off, with their top priority being to secure their positions. On the other hand, some investors like billionaire Chamath Palihapitiya continue to envision the prevailing geopolitical uncertainties as to the crypto boon we’ve all been waiting for.