Crypto Market Bloodbath: $249 Million Worth of Longs Wiped Out in Mere Hours

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Based on information from CoinGlass, an astounding $249 million in long positions was closed out over the last day.

Following a significant drop, the value of the cryptocurrency reached its lowest point during the day at approximately $96,891, as indicated by data from CoinGecko.

The reason behind the crash 

Bitcoin‘s massive price drop came after a sharp increase in the 10-year U.S. Treasury yield. 

Earlier today, the Institute for Supply Management (ISM) disclosed its recent report, revealing that the Private Service Sector’s Purchasing Managers’ Index (PMI) in December stood at 54.1. This figure represents an increase from November’s reading of 52.1. Interestingly, it surpassed the anticipated average prediction of 53.5.

The stock market for American companies saw a significant decline after the release of the data, causing worry about potential inflation issues.

The technology-focused Nasdaq-100 index dropped by 1.3%, whereas the well-known S&P 500 index decreased by 0.57% today.

On this particular Tuesday, the stocks of MicroStrategy (MSTR), a significant corporation known for its extensive holding of Bitcoin, experienced a steep drop of approximately 9%.

A big fat nothing? 

Despite a dismal showing in the price index of the ISM services survey, which could typically signal higher-than-expected inflation for risk assets, Oliver Allen, a senior US economist at Pantheon Macroeconomics, posits that this data might not necessarily be a reliable predictor of such inflation trends.

The index can be quite unpredictable, frequently moving both upward and downward. Remarkably, these fluctuations don’t always affect inflation figures. We experienced a comparable alarm last January that ultimately turned out to be completely insignificant,” he remarked in a post on the X social media platform.

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2025-01-07 21:26