Over $130 Million in Cryptocurrency Short Positions Liquidated in 24 Hours
According to Coinglass data, over $130 million worth of cryptocurrency short positions were liquidated on centralized exchanges in the past 24 hours. The bitcoin market saw increased volatility, causing over $93 million in bitcoin positions to be wiped out, with nearly $70 million being shorts.
Bitcoin’s Value Appreciates by Over 21% Since February
The value of Bitcoin has risen by more than 21% since the beginning of February, with its dominance in the cryptocurrency market now at 50%, compared to ether’s 16.3%. On Wednesday, the overall cryptocurrency market capitalization surpassed $2 trillion, reaching a high not seen since April 2022. Bitcoin itself increased by almost 3% in the past 24 hours, trading at $51,521.
Crypto Market Defies Risk-Off Macro Conditions
In contrast to a decline in U.S. equities, the cryptocurrency market remains buoyant. The Dow Jones Industrial Average fell by 412 points or 1.1%, and the S&P 500 was down 1.1% following the release of an inflation report for January. The report showed a rise of 0.3% in the consumer price index from December to January, reinforcing expectations that the Federal Reserve will not cut rates in March.
Expectations for Rate Cut at May’s Federal Open Market Committee Meeting
Interest rate traders using the CME FedWatch tool see a 34% possibility of a rate cut at May’s Federal Open Market Committee meeting but also a significant 63.3% chance of another rate pause. This indicates that markets are pricing in a potential rate cut and further pauses by the Federal Reserve.
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