The new week opened with turbulence for cryptocurrencies!
Cryptocurrency market dropped sharply at the start of the week as economic concerns caused investors holding long positions to be force into selling, leading to losses of over $500 million.
As per CNBC, Bitcoin and Ether both fell in price after recently reaching a new record highs, with Bitcoin down to about $115,000 and Ether to about $,283.
Both cryptocurrencies declined because higher than expected US wholesale inflation data created doubts about whether the Federal Reserve will cut interest rates in September.
As per the outlet, many crypto investors sold their crypto holdings to secure profit which caused a large number of forced sales across market.
In just 24 hours, more than 131,000 traders were liquidated with total sales reaching about $552 million.
This included $123 million in forced sales of Bitcoin and $178 million in Ether.
These liquidations happen when traders who borrowed money to bet on rising prices must sell to pay off their debts which then drives prices down much lower.
Meanwhile, Treasury Secretary Scott Bessent clarified that the bitcoin reserve created by President Trump in March will only consist of bitcoins already seized by the government and any plans to add more must be budget-neutral which left some investors disappointed.