BTC Price Rises Above $43,000 Despite Liquidation of $63 Million in Leveraged Positions
The price of BTC has climbed back above $43,000 following the U.S. Federal Reserve’s decision to pause rates. However, a surge in volatility has resulted in over $63 million worth of leveraged positions being liquidated, as reported by Coinglass data.
The majority of the liquidations were shorts, with $38.4 million wiped out, while $24.7 million in longs were also liquidated when BTC briefly dipped below $43,000. This recent volatility represents a multi-week high and brings the current annualized bitcoin volatility to 51.97%, according to The Block’s Data Dashboard.
The ongoing bitcoin rally has caused annualized bitcoin volatility to steadily rise from a low of 40% at the beginning of December.
Price Correction
YouHodler’s Chief of Markets, Ruslan Lienkha, suggests that the price correction earlier this week was likely due to profit-taking by short-term investors and traders. Lienkha believes that this market volatility may continue and warns of even higher volatility in the near future.
Despite this correction, BTC rose almost 3% in the past 24 hours and reached $43,245 at 12:50 p.m. ET, according to The Block data.
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Hot Take: BTC Price Bounces Back Above $43,000 Despite Liquidations
The price of BTC has rebounded above $43,000 after the U.S. Federal Reserve’s rate pause announcement. However, increased volatility led to the liquidation of over $63 million worth of leveraged positions. The majority of the liquidations were shorts, amounting to $38.4 million, while longs accounted for $24.7 million. This surge in volatility represents a multi-week high and brings the current annualized bitcoin volatility to 51.97%. Despite the recent correction, BTC has risen nearly 3% in the past 24 hours, reaching $43,245. Market analysts warn of possible higher volatility in the near future as traders continue to take elevated risks.
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