Crypto crash today: why altcoins like Dogecoin, Pi Network, Cardano are falling

A crypto crash is happening today, with Bitcoin and top altcoins like Dogecoin (DOGE), Pi Network (PI), Cardano (ADA), Aster (ASTER), and Ondo (ONDO) falling by over 5%. The market cap of all tokens dropped by over 4% in the last 24 hours to $2">Copy link

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US macro data ahead

The other main reason why the crypto market is crashing today is that investors are waiting for the upcoming macro data from the United States.

The Bureau of Labor Statistics (BLS) will publish the October non-farm payrolls (NFP) report later on Tuesday and the latest consumer price index (CPI) report on Thursday this week.

Economists expect the upcoming report to show that the economy added 55k jobs in October, much lower than the 110k it created in the previous month. The labor report will likely be affected by government employees who took Donald Trump’s voluntary retirement, which kicked off on September 30.

Meanwhile, data compiled by Trading Economics is expected to show that the headline and Consumer Price Index (CPI) rose to 3% in November.

These numbers will come a week after the Federal Reserve delivered a 0">Copy link

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The bank’s goal for hiking interest rates is to combat the elevated consumer inflation, which has remained at 3% in the past few months. This inflation may continue rising in the coming months as the impact of the new stimulus package requested by Sanae Takaichi flows through the economy.

Data shows that cryptocurrencies normally drop when the BoJ hikes interest rates because of the perception that the Japanese borrowed cheaply and invested in assets. As rates rise, these investors do the opposite and sell these assets as part of their winding down of the carry trade.

Falling futures open interest

The crypto crash is happening as investors continue to reduce their leverage in the crypto industry, which soared during this year’s bull run.

CoinGlass data shows that the futures open interest has tumbled to $129 billion, down by 4% in the last 24 hours. It dropped from the October high of over $255 billion. A drop in open interest is risky for the crypto market as it reduces the demand.

Futures open interest | Source: CoinGlass

Meanwhile, liquidations soared by 109% in the last 24 hours, with nearly 200k traders being liquidated. Ethereum, Bitcoin, Solana, and XRP positions worth over $233 million, $180 million, $37 million, and $15.6 million were liquidated in the last 24 hours.

The post Crypto crash today: why altcoins like Dogecoin, Pi Network, Cardano are falling appeared first on Invezz

Crypto crash today: why altcoins like Dogecoin, Pi Network, Cardano are falling

US macro data ahead

Falling futures open interest

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