Humanity, Render, Ondo, Worldcoin prices dive as crypto liquidations jump

Some of the best-performing cryptocurrencies have turned around and become the top laggards today amid the ongoing weakness in the industry. Humanity (H) token dropped by 16%, while Render (RNDR), Ondo (ONDO), and Worldcoin WLD fell by over 10%. 

Some of the other top laggards in the crypto market were Virtuals Protocol (VIRTUAL), Celestia (TIA), LayerZero, and Morpho. In total, the market capitalization of coins tumbled by over 3% in the last 24 hours to $2.45 trillion. Bitcoin, the biggest cryptocurrency, dropped to $72,000.

Crypto liquidations are soaring today

The ongoing crypto market crash coincided with the surging liquidations as over 167k traders were wiped out. Liquidations jumped by 168% in the last 24 hours to over $927 million.

Bitcoin positions worth over $362 million were wiped out, the biggest single-day increase in over a week. Ethereum positions worth $240 million were also wiped out. Tokens like Worldcoin, Humanity, Ondo, and Worldcoin, which soared a few days ago, also suffered substantial liquidations as traders were caught off guard.

For example, Worldcoin’s liquidations worth over $10 million has happened in the last three consecutive days. Notably, bearish positions worth over $9 million were liquidated on May 26 as the coin jumped.

Liquidation is a situation where crypto exchanges are forced to close leveraged positions when they make substantial losses. In most cases, this liquidation puts more pressure on a cryptocurrency because it leads to more selling pressure. 

US-Iran tensions are driving the sell-off

The crypto market crash has coincided with the retreat of stock market indices like Kospi, Nikkei 225, and ASX 200. US stock futures like the Dow Jones and Nasdaq 100 are also deeply in red today.

At the same time, the US dollar index (DXY) has continued its recent rally and is nearing the key resistance level at $100. This performance is a sign that investors are embracing a risk-off sentiment in the market, which is a bearish sign.

This sentiment is being driven by the fact that the US and Iran are likely moving towards a war. The US has continued to break terms of the ongoing ceasefire. In addition to having a blockade - an act of war -the military has continued to hit some targets this week. 

Isreal, on the other hand, has continued to launch strikes against Lebanon, a move aimed at scuttling the ongoing talks between the US and Israel. 

Therefore, a resumption of war between the US and Iran would be highly bearish for Bitcoin and altcoins like Humanity, Worldcoin, and Ondo. For one, it would lead to higher crude oil prices, which will drive US inflation much higher. 

Indeed, recent data showed that the headline US CPI jumped to 3.8%, while the Producer Price Index (PPI) rose to 6%. These numbers pushed more Fed officials to predict that the bank should hike interest rates, a move that will affect Bitcoin and altcoins.