Massive $170 Million Liquidations Hit Crypto Market Ahead of Fed Announcement
The cryptocurrency market is currently under pressure, with almost $170 million in liquidations reported. CoinGlass data shows that $160.67 million of this was from crypto liquidations, with a significant portion, $136 million, representing bullish bets.
Traders had taken leveraged long positions over the weekend, pushing prices close to $70,000 in Monday’s trading session. However, recent concerns about potential selling by the U.S. government and the outcome of the Fed meeting have triggered a sell-off.
Bitcoin and the entire crypto market have dropped as traders react to signals that the U.S. government may be selling some of its significant crypto holdings. A U.S. government-linked wallet reportedly transferred $2 billion in Bitcoin to a new address on Monday, further fueling the market’s decline.
Bitcoin hit a low of $65,875 on Tuesday before slightly recovering to around $66,330. The majority of cryptocurrencies are also seeing losses at the moment.
Investors are awaiting the Federal Reserve’s decision from its latest policy meeting, which is expected to provide insights into future interest rates and monetary policy. The Fed’s meeting began on Tuesday and will conclude on Wednesday, with a policy decision and a press conference by Fed Chairman Jerome Powell.
While the market anticipates that interest rates will remain unchanged this week, investors are hoping for new signals about the rate outlook. Key economic data will also be released this week, including ADP’s private payrolls report and the July jobs report.
In conclusion, the crypto market is facing pressure from significant liquidations and concerns about potential selling by the U.S. government. Investors are closely watching the outcome of the Fed meeting for insights into future monetary policy. This development could have a significant impact on the market and investors’ portfolios.