As an analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market volatility and unexpected turns. Today’s Bitcoin (BTC) sell-off, following the US Fed meeting, is a stark reminder that even the most anticipated events can lead to unpredictable outcomes.
Following the US Federal Reserve meeting on July 31, there’s been a noticeable wave of selling in Bitcoin (BTC), causing its price to dip by approximately 3% to around $64,000 at the time of this report. This downturn has triggered substantial Bitcoin liquidations, amounting to over $56 million within the past day.
Bitcoin Liquidations Surge
On a Wednesday, Jerome Powell, Federal Chair, opted to maintain interest rates at 5.25-5.5%, implying a possible reduction by 0.25% in September if the July’s inflation figures align with expectations.
Despite meeting market predictions, the recent development turned into a sell-off event, affecting both Bitcoin (BTC) and other altcoins. This selling spree resulted in approximately $193 million worth of overall liquidations across the market. Notably, BTC and ETH account for more than half of these liquidations, contributing significantly to this massive sell-off.
Over the past 24 hours, as I’ve analyzed data from Coinglass, it appears that Bitcoin saw approximately $45 million in long liquidations versus around $10.94 million in short liquidations. In contrast, Ethereum recorded a total of roughly $55 million in liquidations, with about 80% being long positions. Interestingly, the value of Ethereum plummeted by 3.3%, dipping below $3,200.
Notably, the digital currency exchange Mt. Gox declared on July 31 that it would be distributing Bitcoin (BTC) and Bitcoin Cash (BCH) repayments to over 17,000 creditors in the past month.
Beyond this, economist Peter Schiff voiced doubts about celebrating a rate reduction in September so soon. He questioned Powell’s belief in reaching the 2% inflation target. Schiff further stated that if Powell isn’t confident now, there’s little reason to think he will be confident by September. Schiff hypothesized that Powell may understand that inflation is unlikely to fall back to 2%, and is instead delaying the rate cut until September to give investors a misleading sense of stability.
If Powell does not currently feel assured that inflation will reach 2% at this moment, it’s unlikely he will become confident by September. Given his understanding that inflation may not decrease to 2%, Powell seems to be delaying a rate cut until September to give investors the impression that it is happening.
— Peter Schiff (@PeterSchiff) July 31, 2024
Altcoins Face Deep Correction
On Wednesday, alongside Bitcoin, alternative cryptocurrencies such as Solana and XRP experienced an even steeper decline. Specifically, Solana’s price dropped by 6.6%, and XRP followed suit with a similar decrease.
1. In recent developments, XRP has experienced significant upward momentum, surging by over 30% during July, as optimism grows regarding the possible resolution of the Ripple vs. SEC legal dispute.
Read More
- BCH PREDICTION. BCH cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- USD PHP PREDICTION
- SOL PREDICTION. SOL cryptocurrency
- SOLAMA PREDICTION. SOLAMA cryptocurrency
- USD COP PREDICTION
- PSTAKE PREDICTION. PSTAKE cryptocurrency
- USD MYR PREDICTION
2024-08-01 07:06