More than $106 million in Ethereum $ETH long positions were liquidated on Binance (@binance) within one hour, the largest hourly event of its kind on the exchange in six months, according to
More than $106 million in Ethereum $ETH long positions were liquidated on Binance (@binance) within one hour, the largest hourly event of its kind on the exchange in six months, according to CryptoQuant analyst Darkfost.
The selloff followed a hotter-than-expected US inflation report. Reuters reported that core CPI, which excludes food and energy, rose 2.6% in the 12 months through September, up from 2.4% in August. Headline CPI rose 3.7% from 3.4% a month earlier, above the 3.6% forecast by economists polled by Reuters.
Darkfost said Ethereum fell from around $2,500 to $2,350 after the release, a decline of roughly 7%, as reported by Coinpedia. Bitbase put the drop at nearly 6%, to about $2,350, and noted that the $106 million figure covers the value of leveraged positions that were closed, not the cash individual traders lost.
The inflation data also pushed up expectations for tighter policy. Reuters said the report put an interest rate increase later this month back on the radar, with gasoline prices up 7.1% in September. TokenPost reported that the probability of another Federal Reserve rate hike rose from 17% to nearly 30% during the week.
Darkfost linked the scale of the liquidations to heavy leverage and to concerns about further Fed rate increases. He also noted that crypto futures trading volume is now roughly nine times spot volume, which leaves the market more exposed to macroeconomic shocks, according to TokenPost and Coinpedia.
When a data release raises the odds of tighter policy, leveraged long positions in risk assets can be closed quickly, which adds to selling pressure. Forced closures push prices lower, which can trigger further liquidations.
The move was not limited to Ethereum. Benzinga reported that Bitcoin and other major tokens fell after the inflation print, while the Crypto Times noted that analysts were focused on rising Treasury yields and borrowing costs as factors influencing the market.
FinanceFeeds noted that the precise six-month ranking could not be independently verified against historical exchange-level data, so the claim rests on Darkfost's analysis.
Sources:Reuters via U.S. News: Hot September CPI Sends Rate-Hike Bets Soaring; TokenPost: Binance ETH Long Liquidations Top $106M in One Hour; FinanceFeeds: Binance ETH Long Liquidations Reportedly Top $106 Million
