Ethereum (ETH), XRP, and Solana (SOL), among other major cryptocurrencies, have been trading at much lower levels than their all-time highs, making the crypto market highly volatile this year. At the time of writing this article, the global cryptocurrency market has declined by 1.16%, falling to $1.02 trillion, while the overall crypto market volume has increased by over 48% to $22.4 billion.
Speaking of performance, the price of ETH has dropped by 2% in the past 24 hours, reaching $1,591.73. XRP and SOL have seen a decrease of 4.72% and 3.84% respectively, trading at $0.4765 and $17.68. The beginning of 2023 has provided investors with a fresh perspective, and several crypto enthusiasts have started regaining trust in the market. However, persistently high inflation and its potential impact on liquidity have negatively affected market sentiment.
Additionally, the US Federal Reserve is expected to announce the Consumer Price Index (CPI) and Producer Price Index (PPI) data, which are key inflation indicators, this week. While many hope that the Fed has put an end to its aggressive interest rate hike policy, investors are being cautious in their actions.
Furthermore, the European Central Bank will also reveal its plans for interest rate hikes on Thursday. Taking all these factors into account, this week is shaping up to be a crucial one for global financial markets, aside from cryptocurrencies.
In recent developments, Solana (SOL) has faced intense selling pressure throughout the week, causing its price to drop to $18.50. Market participants have started to worry that they may have to sell their Solana holdings after FTX’s hearing at the Delaware Bankruptcy Court on Wednesday, September 13.
According to various reports, FTX is expected to receive approval to liquidate $3.4 billion worth of assets, including SOL, FTT, BTC, and ETH. Notably, the exchange had significant SOL reserves but sold large amounts during a crash in November 2022.
According to Coinglass, the liquidation in ETH, XRP, and SOL amounted to $4.79 million, $526,220, and $422,740, respectively, within one hour. In the past 24 hours, a total of 36,181 traders were liquidated, amounting to $78.97 million. The largest single liquidation order worth $1.92 million in ETH-USD-SWAP was executed on the crypto exchange OKX.
In the last four hours, ETH, XRP, and SOL experienced liquidations of $6.47 million, $2.05 million, and $670,400, respectively. The chart indicates a sell-off in the crypto market and shows that investors are trading cautiously amid uncertainties.
Meanwhile, analyst Ali Martinez stated on his Twitter account that Bitcoin‘s daily price chart is pointing to a potential death cross. Dropping below the support level of $25,200 may signal a more significant price correction for Bitcoin (BTC).