Bitcoin Plummets As Traders Suffer $260M In Futures Losses
Key Points:
- Bitcoin prices experienced a slight dip following the quarter-point interest rate rise by the U.S. Federal Open Market Committee (FOMC), in line with expectations.
- FOMC has had an impact on the cryptocurrency market, resulting in slight dips for bitcoin and other cryptocurrencies.
Bitcoin prices experienced a slight dip following the quarter-point interest rate rise by the U.S. Federal Open Market Committee (FOMC), in line with expectations.
The decision reinforced the Federal Reserve’s concerns that inflation remains problematic and that it remains “strongly committed to returning inflation to our 2% objective”. Traders took profits on a 20% gain over a seven-day rolling period, resulting in over $150 million in losses for bitcoin-tracked futures. Over 75% of those losses came from longs, or bets on price rises, as traders likely positioned for a move higher after the FOMC meeting but were caught offside.
Ether also saw losses, falling under $1,600 and contributing to over $280 million in overall crypto futures liquidations. Liquidation refers to when an exchange forcefully closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin. It happens when a trader is unable to meet the margin requirements for a leveraged position (fails to have sufficient funds to keep the trade open). Large liquidations can signal the local top or bottom of a steep price move, which may allow traders to position themselves accordingly.
The recent quarter-point interest rate rise by the FOMC has had an impact on the cryptocurrency market, resulting in slight dips for bitcoin and other cryptocurrencies. However, there is still optimism for bitcoin’s strength in the medium term, driven by potential money injections into the U.S. capital markets. The reaction of all markets to the FOMC move this week could be vital in determining the future direction of bitcoin prices, with the $27,000 resistance zone remaining a key level to watch for traders.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Annie
Coincu News
Author
Bitcoin
Bitcoin Plummets As Traders Suffer $260M In Futures Losses
Key Points:
- Bitcoin prices experienced a slight dip following the quarter-point interest rate rise by the U.S. Federal Open Market Committee (FOMC), in line with expectations.
- FOMC has had an impact on the cryptocurrency market, resulting in slight dips for bitcoin and other cryptocurrencies.
Bitcoin prices experienced a slight dip following the quarter-point interest rate rise by the U.S. Federal Open Market Committee (FOMC), in line with expectations.
The decision reinforced the Federal Reserve’s concerns that inflation remains problematic and that it remains “strongly committed to returning inflation to our 2% objective”. Traders took profits on a 20% gain over a seven-day rolling period, resulting in over $150 million in losses for bitcoin-tracked futures. Over 75% of those losses came from longs, or bets on price rises, as traders likely positioned for a move higher after the FOMC meeting but were caught offside.
Ether also saw losses, falling under $1,600 and contributing to over $280 million in overall crypto futures liquidations. Liquidation refers to when an exchange forcefully closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin. It happens when a trader is unable to meet the margin requirements for a leveraged position (fails to have sufficient funds to keep the trade open). Large liquidations can signal the local top or bottom of a steep price move, which may allow traders to position themselves accordingly.
The recent quarter-point interest rate rise by the FOMC has had an impact on the cryptocurrency market, resulting in slight dips for bitcoin and other cryptocurrencies. However, there is still optimism for bitcoin’s strength in the medium term, driven by potential money injections into the U.S. capital markets. The reaction of all markets to the FOMC move this week could be vital in determining the future direction of bitcoin prices, with the $27,000 resistance zone remaining a key level to watch for traders.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Annie
Coincu News
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