As Bitcoin rebounded to the $43,100 level, $66 million worth of cryptocurrency leverage positions were liquidated.
According to CoinMarketCap, Bitcoin, which had been moving sideways in the late $42,000 price range, showed an upward movement in the early morning of the 7th and touched $43,335. As of 8:20 am, it is trading at $43,194, maintaining an upward trend of 1.75% compared to the previous day.
According to Coinglass, $15 million worth of Bitcoin leveraged positions were liquidated due to the sharp change in direction.
While the overheating surrounding the Bitcoin spot ETF has subsided, the market is paying attention to the impact that two factors, the April halving and the US interest rate cut in May, will have on the market.
Meanwhile, market analysts believe that the impact of the halving could weaken if macroeconomic conditions remain tight.
“This halving will take place within macroeconomic conditions compared to previous ones,” Ruslan Lienka, head of markets at Yukhodler, said in an interview with The Block. “This could have a different impact on prices.”
“The positive effects of the Bitcoin halving could be delayed or weakened by pressure from high interest rates in financial markets,” he said.
Federal Reserve Chairman Jerome Powell ruled out the possibility of an early interest rate cut in a CBS broadcast interview last weekend. “I want to have some confidence that prices are falling to 2%,” Powell said. “I don’t think it’s likely that the committee will have that level of confidence by the time it meets in March, which is seven weeks away.”
“The market is currently expecting a rate cut in May, but market sentiment changes very quickly depending on investor sentiment, so there could be a correction soon,” Rienka said. “On a positive note, capital inflows into risk assets will likely be limited until at least the middle of this year, and related markets will likely be under pressure,” he said.
