The cryptocurrency market has faced a significant selloff over the past two days, resulting in a wave of liquidations across various platforms. Bitcoin (BTC), the largest cryptocurrency by market capitalization, saw a decline of 3.5% over the past 24 hours, trading at $67,275. Ethereum (ETH), the second-largest cryptocurrency, fell even more sharply, down 4.6% to $3,495.

This substantial market downturn has led to the liquidation of approximately $270.4 million in leveraged positions over the past 24 hours, according to CoinGlass. A notable majority of these liquidations, totaling $238 million, were from long positions. Ether led the liquidation tally with $70.5 million, of which $64.6 million were long positions, closely followed by Bitcoin with $68.88 million in liquidations. Binance emerged as the top exchange for these liquidations, recording $99.7 million at the time of publication.

The market downturn comes at a critical time, with investors bracing for significant macroeconomic updates. The monthly Consumer Price Index (CPI) report and a Federal Reserve monetary policy announcement are both scheduled for Wednesday. These reports are expected to provide crucial insights into the economic outlook, influencing market sentiment and trading strategies.

The heightened correlation between Bitcoin and traditional risk assets suggests that cryptocurrencies are not immune to broader market dynamics. This is particularly evident as traders adopt more conservative strategies in anticipation of key economic data releases. The drop in implied volatility across Bitcoin and Ether indicates a more cautious market stance, with investors possibly waiting for clearer signals before making significant moves.