Data: If ETH falls below $1188, MakerDAO and AAVE will liquidate over 44 million magnesium

Blockonomics
Data: If ETH falls below 88, MakerDAO and AAVE will liquidate over 44 million magnesium
Blockonomics


The price of ether accelerated to catch the bottom, with a minimum drop of $1,280, a maximum drop of more than 10% in the past 24 hours, and a low point in nearly a month. As the price of ether continued to fall, decentralized finance (DeFi) platforms are also facing Various liquidation crises, when ETH fell to $1188, the liquidation limit of ETH and stETH on MakerDAO and AAVE exceeded $44 million. (Recap:ETH fell below 1300, BTC fell below 19000; 24H the entire network exploded 376 million magnesium, nearly half of which came from Ethereum) (relevant additions:Dropped after the merger!Ethereum fell 15% a day, and the market value of cryptocurrencies fell below 1 trillion magnesium; analyst: ETH will suffer a serious blow)

niceThe annual growth rate of the Consumer Price Index (CPI) released by China on the 13th reached 8.3%, which did not show a downward trend. All circles are worried that the inflation data will trigger the Federal Reserve (Fed) to raise interest rates by more than 3 yards. In addition, last week’s Ethereum (ETH) After the completion of the merger, the news that the profit will be exhausted has caused the price of ether to accelerate to the bottom. It has fallen below $1,300 from last week’s high of $1,760 before the deadline, and the lowest fell to $1,280. The largest drop in the past 24 hours is more than 10%, and a record Nearly one-month low; Bitcoin also fell below $19,000 in a single day, falling nearly 6% at one point.

MakerDAO and AAVE face ETH liquidations

As the price of ether continues to fall, decentralized finance (DeFi) platforms are also facing various liquidation crises. According to Deflama data, ETH on the MakerDAO and AAVE protocols will face liquidation. When ETH falls to $1,284, There will be 3354.57 ETH liquidated on MakerDAO, worth $4.3 million; when ETH falls to $1263, there will be 948.248 stETH liquidated on AAVE, worth $1.2 million.

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When ETH fell to $1,188, the liquidation limit of ETH and stETH on MakerDAO and AAVE exceeded $44 million, and there was a possibility that a large amount of ETH would be sold off in the market and may face further declines.

Source: defillama

In addition, in terms of WBTC liquidation pressure, according to Deflama data, when BTC fell to $17,492, there would be 102.217 WBTC liquidations worth $1.78 million on MakerDAO; when BTC fell to $17,476, there would be 765.846 WBTC on Compound It was liquidated with a value of more than 13 million US dollars. Compared with ETH, most of the liquidated amount of WBTC came from ETH.

Source: defillama

Before the deadline, the current price of ether was $1,290, a price difference of about $100 from the current maximum clearing price of $1,188. At present, the market focus this week is on the Federal Reserve’s announcement of interest rate decision in September at 2:00 a.m. on the 22nd. If With a four-yard rate hike to 3.23 – 3.5%, Ether will likely continue to dip and hit a liquidation price of $1,188.

Ethereum price action. Source: Tradingview

And whether it will hit the key $1,188 price, the key may be that the US Federal Reserve (Fed) will announce its September interest rate decision at 2:00 a.m. Taiwan time on Thursday (22nd) this week. The higher-than-expected price index (CPI) has led to a collective dive in the stock market and cryptocurrency market. Currently, according to CME FedWatch forecast data, there is an 82% chance that the Fed will raise interest rates three times in September to raise the benchmark interest rate to 3.0 – 3.25%; The odds of a four-yard interest rate to 3.25 – 3.5% are 18%, and the odds of a two-yard gain have dropped to zero.

Further reading:The probability of the Fed raising interest rates by 3 yards this week breaks through 80%! Biden: US expects ‘soft landing’

Source: FedWatch

In addition, according to the latest survey by the Financial Times and the University of Chicago Booth School of Business, about 7 percent of 44 economists surveyed on September 13-15 believe the Fed will benchmark the Fed during a tightening week. The interest rate has been raised to a peak of 4-5% (now 2.25-2.5%), and even 20% of scholars believe that it will exceed this level, which also implies that the interest rate hike environment will continue until 2023 or beyond to curb the current Qualcomm Expansion environment.

📍Related reports📍

Bridgewater’s Ray Dalio on inflation: The Fed’s big interest rate hike will have “two negative effects” on asset prices, and the market will fall by about 20%

FED officials shouted eagle: Need to raise interest rates quickly, more than 4% is not impossible; Goldman Sachs: 50% probability of US recession next year and next year

Financial Times poll: Most economists don’t think the Fed will change monetary tightening until 2024

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