Bitcoin and Ethereum Prices Plummet, Triggering $176 Million in Liquidations

Cryptocurrency prices took a sudden dive on Thursday afternoon. This drop affected major players like Bitcoin and Ethereum, leading to a wave of liquidations, especially of long positions. The market turned red quickly.

Bitcoin fell nearly 3% in just over an hour, settling at around $57,787. Ethereum dropped even more, now priced at $2,547, according to CoinGecko. Other top coins, like Solana and Dogecoin, faced even steeper declines during this time.

In the past 24 hours, liquidations surged past $176 million due to this market volatility, as reported by Coinglass. Out of this, $98 million occurred in the last four hours alone. Ethereum led the way with over $59 million in liquidated positions, followed by Bitcoin at about $50 million.

There isn’t a clear reason for these sharp declines. It could be linked to cascading liquidations that ripple through the crypto markets. Prices have continued to drop since the initial reports, and 24-hour liquidations are rising.

Earlier on Thursday, both Bitcoin and Ethereum showed volatility after the latest consumer price index (CPI) report was released on Wednesday. However, this recent dip doesn’t seem tied to broader economic factors. Interestingly, stock prices soared on Thursday, seemingly unaffected by the same issues that impacted crypto.

In July, U.S. inflation fell to 2.9%, the lowest annual rate since 2021. Analysts are predicting that the Federal Reserve will implement “aggressive” interest rate cuts starting in September. This could stimulate the U.S. economy, as stated by Morningstar’s chief U.S. economist, Preston Caldwell.

U.S. markets have been performing well recently. The Nasdaq Composite rose 2.3% in the last 24 hours, while the S&P 500 and Dow Jones Industrial Average gained about 1.6% and 1.4%, respectively.