Key Points
- Bitcoin’s value has surged past $69,000, leading to over $28 million in short liquidations within 24 hours.
- The wider cryptocurrency market experienced over $198 million in liquidations during the same period.
Bitcoin’s price experienced a significant increase, crossing the $69,000 threshold. This led to a spike in short liquidations, which exceeded $28 million in just a day.
Bitcoin’s Rally and Market Impact
The rise in Bitcoin’s value resulted in a total of $48 million in liquidated positions. The broader cryptocurrency market was not immune to this impact, with over $198 million in liquidations reported within the same 24-hour period.
This surge followed the release of U.S. inflation data. The data indicated that the headline Consumer Price Index (CPI) rose by a lower-than-expected 3.3% year-over-year in May. This was against the 3.4% increase economists had predicted.
Anticipations from the Federal Reserve Meeting
The U.S. Federal Reserve’s rate-setting meeting is expected to maintain the current interest rate of 5.25% to 5.50%. However, a poll of economists suggests that the Federal Reserve is likely to reduce rates twice this year, starting in September.
Aurelie Barthere, a Principle Research Analyst at Nansen, suggests that after the CPI print, the Federal Reserve will likely revise growth downwards and remove some rate cuts to align with markets. Barthere believes that Powell will maintain a dovish stance, considering the data.
At the time of writing, Bitcoin is trading around $69,300, marking over a 3% increase in the past day. The price of Ethereum also increased by more than 2% to $3,635 during the same period.
