According to Coinglass data, over $130 million worth of cryptocurrency short positions were liquidated on centralized cryptocurrency exchanges in the last 24 hours.
The Bitcoin market has become more volatile over the past day, with the price exceeding $51,000. This price action wiped out over $93 million from Bitcoin positions, leaving nearly $70 million short.
bitcoin BTC
+4.32%
Its value has risen by more than 21% since the beginning of February, and the most important cryptocurrency’s dominance is now at 50%, compared to 16.3% for cryptocurrencies. ether.
On Wednesday, the overall cryptocurrency market cap rebounded to more than $2 trillion. This is the highest since April 2022. According to The Block’s price page, Bitcoin is up nearly 3% over the past 24 hours, trading at $51,521 at 5:40 a.m. ET. .
Bitcoin price is up almost 3% in the last 24 hours. Image: Block.
Cryptocurrency markets ignore risk-off macro conditions.
The cryptocurrency market is buoyant compared to the decline in US stocks over the past 24 hours. The Dow Jones Industrial Average fell 412 points, or 1.1%, and the S&P 500 fell 1.1% following the release of the U.S. January inflation report on Tuesday. According to a report from the U.S. Department of Labor, the consumer price index rose 0.3% from December to January, up from 0.2% the previous month.
Inflation has not cooled as much as markets had expected, strengthening overall expectations that the Federal Reserve will not cut interest rates in March. Currently, the market estimates that there is a 91.5% chance of interest rates being suspended next month. This is a notable change from the consensus a month ago that interest rates would be cut in March.
According to the CME FedWatch tool, interest rate traders see a 34% chance of a rate cut at the May Federal Open Market Committee meeting, but a 63.3% chance of another rate freeze.
The CME FedWatch tool shows rising expectations of a rate cut at the May FOMC meeting. Image: CME FedWatch.
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