Crypto liquidations: $483m of bitcoin and ether bets wiped out as ether falls 6% to $2,356

Crypto markets fell overnight as uncertainty over the US Federal Reserve's next move hit risk assets, and leveraged traders paid for it. About $483 million of bitcoin and ether futures positions were liquidated in 24 hours, according to CoinGlass data checked on Thursday morning Asian time, CoinDesk reported.

The moves, 24 hours to Thursday morning

Ether took the bigger share of the damage, about 59% of the bitcoin and ether total, even though bitcoin's futures market is larger: about $52 billion of bitcoin contracts are open against about $30 billion in ether. CoinDesk noted that a liquidation is the value of positions force-closed by exchanges, not the cash traders actually lost.

Why it fell

Hotter-than-expected US inflation figures this week (September CPI rose to 3.7%, our report) revived talk that the Fed may have to raise rates rather than cut them. Higher rates make riskier assets such as crypto and tech shares less attractive, and Asian chip stocks also sold off (SK Hynix fell 10%).

In rupees

At the interbank rate of Rs 276.95 to the dollar, one bitcoin at $81,000 is about Rs 2.24 crore and one ether at $2,356 is about Rs 6.5 lakh. Our bitcoin price page and ether price page update through the day, and the currency converter works out any amount.

If you hold crypto in Pakistan

Crypto is still not legal tender here and there is no local investor protection if an offshore exchange fails. Leverage is what turned a 3% to 6% dip into forced selling overnight: on 10x leverage, a 6% fall in ether wipes out more than half of a trader's margin. Gains on crypto are also taxable as income or capital gains; our capital gains tax calculator gives a rough idea.