U.Today – The cryptocurrency market is currently facing selling pressure, with nearly $170 million reported in liquidations.
According to data from CoinGlass, $160.67 million was in cryptocurrency liquidations, with a larger portion of this figure, $136 million, representing bullish bets.
Traders had leveraged long positions over the weekend, reaching nearly $70,000 in Monday's trading session, a trend that is now being “sold” due to recent selling concerns by the US government and the outcome of the Federal Reserve meeting.
Bitcoin and the entire cryptocurrency market fell as traders took note of signs that the U.S. government may sell off parts of its sizable cryptocurrency holdings. According to blockchain research firm Arkham Intelligence, a wallet linked to the U.S. government transferred $2 billion worth of bitcoin to a new address on Monday.
Bitcoin fell to a low of $65,875 on Tuesday before rising slightly to trade around $66,330 at press time. On Monday, the world's largest cryptocurrency approached $70,000 for the first time since mid-June.
Most cryptocurrencies were also suffering losses at the time of writing.
A Federal Reserve decision is coming
Investors are closely watching the outcome of the Federal Reserve's latest monetary policy meeting, which is expected to provide crucial information on the future direction of interest rates and monetary policy.
The Federal Reserve's July meeting begins Tuesday and ends Wednesday, with a monetary policy decision and a news conference by Fed Chairman Jerome Powell.
Markets are broadly expecting the central bank to keep interest rates on hold this week, but many investors are hopeful that policymakers will provide fresh signals on the outlook for rates.
Key economic data is expected to be released on Tuesday. Later this week, the ADP private payrolls report will be released, as well as the July employment report, which includes nonfarm payrolls and unemployment statistics.
This article was originally published on U.Today
