As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous bull and bear cycles, but the cryptocurrency market presents unique challenges that keep me on my toes. The Bitcoin price surge to $60,000 was indeed an exciting development, but the subsequent rejection and rise in short positions is a reminder that the crypto market is still highly volatile.
As I, the researcher, observed yesterday, the Bitcoin price made an attempt to breach the $60,000 threshold on Sunday. However, this endeavor was met with a robust resistance, leading to an instant increase in short positions for Bitcoin. At the moment, Bitcoin is trading 1.7% lower at $58,515, and its market capitalization stands at approximately $1.115 trillion.
Bitcoin Short Positions on the Rise
Once the price of Bitcoin reached $60,000, traders who had bet on its decrease (Bitcoin shorts) became increasingly active across various trading platforms. Notably, the 24-hour short volumes soared by approximately 118% to over $18.30 billion. HODL15Capital pointed out an evident disparity in the crypto market among exchanges such as Deribit, Bitmex, Bitfinex, Kraken, and HTX.
Additionally, the Twitter account indicated that high-leverage crypto positions of 50 times and 100 times on Binance might be at risk of being liquidated, implying a possible change in market dynamics.
It appears that the heavily leveraged short positions, about 50 times and 100 times, on Binance are likely to face liquidation in the near future. Catch you later, mate!
— HODL15Capital (@HODL15Capital) August 19, 2024
Over the past day, a total of approximately $77 million worth of cryptocurrencies have been sold off or “liquidated.” Out of this amount, around $50 million was from long positions and about $26 million came from short positions. Among all the cryptos, Ethereum accounted for the highest liquidations, totaling approximately $19.5 million.
ETF Flows Fail to Ignite Bullish Sentiment
Over the last fortnight, the accumulation into Bitcoin and Ethereum ETFs has been relatively slow. Last week, Bitcoin ETFs experienced a net inflow of only $32.5 million. Interestingly, the Grayscale Bitcoin Trust GBTC witnessed outflows totaling $195 million. In contrast, Fidelity’s BTC ETF saw inflows worth $82.3 million, and BlackRock’s IBIT recorded net inflows of approximately $71.07 million.
Similarly, the spot Ethereum ETFs saw net outflows at $1.416 million last week. BlackRock’s ETHA saw net inflows of $76.35 million while Fidelity’s FETH saw a net inflow of $25.79 million. At the same time, Grayscale’s ETHE saw net outflows of $118 million. Some market analysts also predict that Ethereum ETF could snatch 50% of inflows coming to Bitcoin ETF.
As a researcher, I’m keenly anticipating the upcoming Federal Open Market Committee (FOMC) meeting this week. The insights shared by Fed Chair Jerome Powell are also of significant interest. Additionally, the annual gathering among US banks at Jackson Hole will be under my watchful eye. It promises to be intriguing to observe how Bitcoin’s price responds to these macroeconomic developments.
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2024-08-19 11:55