Bitcoin Shorts Take $28 Mln Hit as Rally Above $69,000 Sparks Liquidations

BySamson Ononeme

Jun 12, 2024
A rally that took bitcoin past the $69,000 mark triggered $48 million in liquidations for the token and over $198 million across the crypto market, burning traders who had shorted digital assets ahead of this week's Fed meeting.

Key Insights

  • Bitcoin short traders faced over $28 million in liquidations as the cryptocurrency rallied above $69,000.
  • The price surge followed cooler U.S. inflation data, raising hopes the Federal Reserve may pause rate hikes.
  • Overall crypto liquidations topped $198 million, with ether also gaining over 2% amid the improved sentiment.

LONDON (MarketsXplora) – Bitcoin short traders have been hit with over $28 million in liquidations over the past 24 hours after the cryptocurrency spiked above $69,000, data showed on Wednesday, as investors positioned for a potential easing in U.S. monetary policy.

The largest digital asset by market cap jumped around 4% to trade near $69,700 following cooler-than-expected U.S. inflation data on Wednesday that reinforced expectations the Federal Reserve may soon pause its interest rate hike campaign.

Bitcoin Shorts Take $28 Mln Hit as Rally Above $69,000

In the crypto market, the price rise triggered $48 million in overall bitcoin liquidations and over $198 million across all digital assets tracked by data firm Coinglass.

“The rally follows the release of U.S. inflation data that showed headline CPI increased by a lower-than-forecast 3.3% year-over-year in May,” said Ethan Stephen, analyst at MarketsXplora. “This has led to hopes the Fed will pause rate hikes.”

The U.S. central bank is widely expected to hold interest rates steady at 5.25%-5.5% when policymakers conclude their meeting later on Wednesday, CME Group data showed, with a 99.4% probability priced in for no change.

However, a Reuters poll pointed to the Fed likely cutting rates twice this year, starting in September.

“It is expected the Fed will revise growth down and remove some rate cuts to align with markets after the CPI print,” said Claire Madden, head of research at Connaughton Group. “But Powell will aim to strike a dovish tone in his press conference.”

Ether, the second-largest cryptocurrency, also benefited from the improved sentiment, rising over 2% to around $3,635.

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, Samson captivates readers with captivating storytelling and delivers insightful market analysis. He is a trailblazer in the finance industry, empowering individuals with knowledge and shaping the narrative of money. Get ready to be inspired by his literary prowess and entrepreneurial leadership.

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