Bitcoin Short Liquidations Surge As Price Crosses $100K, Defying FOMC Concerns
The post Bitcoin Short Liquidations Surge As Price Crosses $100K, Defying FOMC Concerns appeared on BitcoinEthereumNews.com.
Bitcoin bulls managed to push price back above $100,000 in the last 24 hours, for the first time since early February. However, the circumstances behind the momentum paved the way for a massive surge in liquidations. Bitcoin has been recovering since it bottomed out in April and has extended the same momentum so far this month. Its momentum was particularly evident in the last 24 hours, during which price surged by almost 4% from sub $97,000 levels. The cryptocurrency exchanged hands at $101,048 at press time, after a brief struggle with resistance just below this key price point, before the bulls eventually won. However, this latest move also triggered a significant surge in liquidations. Almost $200 million worth of shorts were liquidated in the last 24 hours. In contrast, only $20.36 million worth of long positions were liquidated during the same period. This ratio of shorts suggests that there were heavy bearish expectations. BTC liquidations/ source: Coinglass The short liquidation figures in the last 24 hours were the highest observed in the last 2 weeks. The reason for the high liquidations is perhaps even more interesting. Investors have been expecting a rate cut but the Federal Reserve revealed that rates would remain unchanged during Wednesday’s FOMC meeting. This may explain the surge in bearish expectations especially considering that BTC was already overbought. FED’s Treasury Bond Purchase Boosts Bitcoin Bulls Bitcoin bulls may have also received a confidence boost courtesy of recent reports which revealed that the FED was pumping more liquidity into the economy. The financial authority reportedly acquired a total of $34.8 billion worth of treasury bills this week. Source:X This confirmed that market liquidity was growing at a time when the FED has been trying to balance the economy and keep inflation in check. Interestingly, this new purchase…
