CoinGlass data shows that $127 million in Short positions across all cryptocurrencies were liquidated out of a total of $168 million in assets liquidated in the past 24 hours.
Most of that number is a bet on Bitcoin, with BTC short position liquidations currently at nearly $48 million in 24 hours.
.png)
Long positions also recorded significant liquidation as approximately $40 million worth of Longing positions were liquidated across all Cryptoasset in the past 24 hours.
Bitcoin price is up about 5% in the past 24 hours, currently trading at $62,700. Although Bitcoin has struggled in recent days and at one point this week fell below $57,000. Over the past 3 weeks, every 2 weekends when Bitcoin ETFs closed their transactions, BTC had a slight recovery.
This is well below Bitcoin's new March All-Time-High of nearly $74,000. Even lower than the previous 2021 record of $69,044.
Bitcoin and the cryptocurrency market in general have been severely hurt after the Federal Reserve hinted that it would be in no hurry to cut interest rates.
Other geopolitical factors, such as conflicts in the Middle East, have also made “risky” assets like Bitcoin less attractive to investors, leading to continued outflows from exchange-traded funds. Bitcoin ETF Spot exchange.
However, yesterday, the US government's Non-Farm Payrolls report showed that the unemployment rate in April was higher than expected. This is interpreted by some cryptocurrency traders as optimistic: high unemployment makes the Fed more likely to XEM lowering interest rates due to the risk of a financial crisis being very close to its hawkish policy. tightening cash flow for too long.
Over the past 2 years, the financial industry has been witnessing record high interest rates over the past 10 years, the last recorded time being in 2008 when the US real estate credit market crashed. into a state of crisis. The main cause of this breakdown is that the loose monetary policy of the US Federal Reserve (FED) in the early 2000s (interest rates dropped to 1%) was maintained for too long, leading to The real estate credit market is growing hot and banks have also lowered lending standards.
Therefore, when the FED increased interest rates since 2005 to deal with inflation due to high oil prices since the Iraq war, many people who borrowed money to buy real estate fell into a state of insolvency. Banks, therefore, also fall into a situation of lack of liquidation, reduced profits, and even bankruptcy.
VIC Crypto compiled
Related news:
Grayscale's Bitcoin ETF recorded positive cash flow for the first time when it collected $63 million
Layer 2 Base could turn Coinbase into the NVIDIA of the DeFi world
Australia will launch Bitcoin ETF Spot funds by the end of 2024
Digital securities platform Securitize raises $47 million led by BlackRock
Will the FED cut interest rates? Predictions from traders and Wall Street
