Ethereum Price Plummets Following $667 Million Liquidation Event

Summary:
The cryptocurrency market experienced a significant downturn early Tuesday, with Ethereum's price falling below $3,000 once again. This drop was attributed to a $667 million liquidation wave that affected leveraged positions across various cryptocurrencies. Despite recent developments, including JPMorgan Chase's launch of a tokenized money-market fund on Ethereum, the price could not sustain any upward momentum.

Key Takeaways

Ethereum's price decreased by nearly 6% in the last 24 hours, settling at $2,918.
A total of $667 million in leveraged positions were liquidated across the cryptocurrency market.
Ethereum saw $246 million liquidated compared to Bitcoin's $206 million.
Recent job figures revealed a net job loss over the past two months, contributing to market uncertainty.
JPMorgan Chase announced its first tokenized money-market fund on Ethereum but did not positively impact the price.
A Consumer Price Index report is set to be released Thursday, which may influence market trends.

Ethereum Price Plummets Following $667 Million Liquidation Event

Main Content

The cryptocurrency market continued its downward trend early Tuesday, as the price of Ethereum fell below the $3,000 mark. In the last 24 hours, the price dropped nearly 6%, reflecting widespread losses among many cryptocurrencies. According to data from CoinGlass, a staggering $667 million in leveraged positions were liquidated across the market during this timeframe, with Ethereum suffering more significant losses than Bitcoin.

Within just 24 hours, Ethereum experienced liquidations totaling $246 million, while Bitcoin recorded $206 million. The decline was exacerbated by recently released job figures that revealed a net job loss over the previous two months. Specifically, 64,000 jobs were added in November; however, the unemployment rate rose to 4.6%, the highest it has been in four years, contrasting with expectations of 4.4%. In October, employment had already declined by 105,000, following the addition of 119,000 jobs in September.

On Monday, U.S. spot Bitcoin and Ethereum exchange-traded funds (ETFs) saw a combined $582 million in net outflows, marking the highest withdrawal since November 20. Of that, Ethereum ETFs alone experienced $224.8 million in outflows, signifying the third consecutive day of withdrawals, as reported by Farside.

As of the latest update, Ethereum (ETH) was down 6.93% over the past 24 hours, trading at $2,918, and down 6.36% for the week. This decline follows a recent high of $3,477 on December 10, resulting in a loss for five out of the six following days, including today.

Interestingly, recent news regarding JPMorgan Chase's introduction of its first tokenized money-market fund on the Ethereum platform, known as the My OnChain Net Yield Fund (MONY), failed to rally the price of ETH. This new fund, backed by an initial investment of $100 million, had been anticipated to have a positive influence, especially as crypto bull Tom Lee suggested the news was bullish for Ethereum. JPMorgan is joining established financial entities like BlackRock, Franklin Templeton, and Fidelity, all of which have launched their own tokenized money-market funds.

Looking forward, a notable event on the economic calendar is the release of the November Consumer Price Index (CPI) report on Thursday, which is forecasted to show an increase in overall inflation to 3.1% year-over-year. On the same day, new unemployment insurance claims will also be reported, potentially adding to the current market uncertainty.

Investors appear to be anticipating a 75% chance that the Federal Reserve will maintain interest rates during its January meeting, which is indicative of the prevailing caution in the market.