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News

Bitcoin Long Squeeze Drives Price Decline, Says CryptoQuant

September 30, 2024 - Around 2 mins mins to read

Key points:

  • Bitcoin’s price dropped by over 3% in the past 24 hours amid a “long squeeze” in the perpetual futures market, according to CryptoQuant data.
  • The crypto market downturn coincided with growing caution in global equities as investors brace for potential interest rate hikes from the Bank of Japan that could impact overall risk sentiment.
Bitcoin’s price fell over 3% due to a “Bitcoin long squeeze” in the perpetual futures market, with $49M in liquidations as caution grows amid potential Bank of Japan rate hikes.
Bitcoin Long Squeeze Drives Price Decline, Says CryptoQuant

Bitcoin Long Squeeze Triggers $49M in Liquidations

Data from CoinMarketCap showed that Bitcoin’s price shed more than 3% in the last day after a “long squeeze” took place within the perpetual futures market. That had resulted in $49 million worth of long-position liquidations.

CryptoQuant shows that the futures market has been overheated, with open interest surpassing $19 billion. Whenever that happened, Bitcoin prices dropped, according to data from Coinglass.

Read more: Ohio Crypto Bill Now Advancing to Approve Bitcoin Tax

Market Caution Amid Bank of Japan Rate Hike Speculation

Global markets had turned cautious, as the leadership change in Japan flagged the prospect of interest rate hikes from the Bank of Japan, adding to downward pressure on risk assets, such as Bitcoin.

Investors were still on their toes, cautious about the repetition of July’s yen carry trade unwind that saw Bitcoin fall steeply. The market is now looking forward to further central bank actions.

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.

Bitcoin

Bitcoin Long Squeeze

CryptoQuant

Japan

Author

William

In the fast-paced world of day trading, I've honed my skills for over six years using technical analysis tools and crafting short-term strategies. My expertise isn't from textbooks but from the trenches of online trading communities. I excel at reading chart patterns, applying technical analysis, and mastering risk management. "The market is about probabilities," I declare. As Editor at Coincu, I empower readers with the insights and strategies to conquer the dynamic world of day trading.