Key Points
- Bitcoin’s price fell below $64,000 despite major stock indices achieving record highs.
- The overall cryptocurrency market saw over $134 million in liquidated long positions in the last 24 hours.
Despite the major stock indices reaching record highs, the price of Bitcoin fell below $64,000 on Friday. This occurred even as the market anticipated a dovish rate cut.
Bitcoin’s Correlation with Equity Markets
Bitcoin’s price has often aligned with equity market sentiment. However, this downturn in Bitcoin’s price has occurred simultaneously with major indexes closing at record levels for two consecutive days. The Dow, S&P 500, and Nasdaq Composite all gained in their fourth winning session in a row.
The macroeconomic sentiment has been uplifted by recent indications of rate cuts from the U.S. Federal Reserve and a surprise rate cut by Switzerland’s central bank. This came after a reduction in Swiss inflation to 1.2% in February.
Volatility in the Cryptocurrency Market
The largest cryptocurrency by market cap saw a decrease of over 4% in its value in the past 24 hours. This price correction led to a significant liquidation of long positions on centralized exchanges. More than $54 million in Bitcoin positions were liquidated, with the majority being longs, according to CoinGlass data.
The second-largest cryptocurrency, Ethereum, also saw a 3.4% downturn in the past day. SOL, the native coin of the Solana network, experienced an even larger decrease, sliding by over 8% in the same period.
The overall cryptocurrency market saw over $134 million in liquidated long positions in the last 24 hours, contributing to a total of $192 million in liquidations across various centralized exchanges. This happens when a trader’s position is forcibly closed due to a lack of funds to cover losses, leading to the depletion of their initial margin or collateral.
Bitcoin exchange reserves have hit a multi-week low, indicating an increase in investors moving their coins as part of a long-term holding strategy. Over the past month, there has been an outflow of over 44,600 bitcoins, resulting in exchange reserves hitting a multi-week low of just over 2 million bitcoins. This outflow trend has been observed since the beginning of the year, possibly driven by the rise in the digital asset’s price and spot bitcoin ETF inflows.
Lastly, the GM 30 Index, representing a selection of the top 30 cryptocurrencies, has increased by 3.81% to 143.15 in the past 24 hours.
