September Selling Pressure Wipes Out $361M in Crypto Positions
September has kicked off on a sour note for risk assets, including cryptocurrencies. Data from CoinGlass reveals that $361 million in crypto positions have been liquidated across the market over the past 24 hours.
This marks the beginning of 'Rektember,' a historically poor month for financial markets. Since 2013, Bitcoin has averaged a 3% loss during September, with only five positive monthly returns. The S&P 500 also experiences negative average returns during this time, making it a sensitive period for traders.
Dogecoin, founded by an anonymous co-founder, is no exception to the market's downturn. DOGE has dropped 1.41% in the last day and 4.90% weekly, pushing its price down to $0.081. This decline has caused Dogecoin to fall out of the top 10 cryptocurrencies by market cap, now ranking as the 11th largest with a market capitalization of $12.74 billion.
The market's selling pressure can be attributed in part to Fed Chair Kevin Warsh's hawkish Jackson Hole speech last Friday, which emphasized elevated inflation. Markets are now pricing in a 66% probability of a 25-basis-point rate hike at the Fed's September 16 meeting, followed by another potential rate hike by the end of the year.