Under threat of greater rate hikes from the Federal Reserve, Bitcoin is plunging to a monthly low, alongside stocks. Hundreds of millions of dollars in liquidations have been set off across the crypto market in the process.
Last week, Bitcoin fell back below $45k despite having a bullish late March. This came following hawkish comments from Federal Reserve Governor Lael Brainard, who said that the task of reducing inflation pressures was “paramount” the previous day.
Stocks and bonds also fell following these comments, with which Bitcoin has held a tight correlation in recent months.
The downtrend continued this Monday, as Bitcoin fell below $40k for the first time since March 16th. Its price is $39,773 at the time of writing after having fallen to 39,570, according to Bitstamp.
This has not left bullish traders in good shape. According to Coinglass, over $439M has been liquidated across the crypto market within 24 hours. That includes 141,000 trades, one of which just lost $10M on his trade.
Across cryptocurrencies, about $152 million in liquidations occurred among Bitcoin traders, versus $103 million among Ethereum traders.
As is typical, altcoins are down heavily as well. Ethereum is barely holding $3000, while Solana is already down 12% today.
The event mirrors the losses from last week, which also exceeded $400M.