Crypto traders were hit with a wave of long liquidations over the weekend as Bitcoin’s price took a tumble, falling from a high of over $71,000 on Friday to around $68,500. The price dip triggered a cascade of liquidations across exchanges, wiping out long positions and sending ripples through the market.
Long Positions Wiped as BTC Slides
Bitcoin’s fall set off liquidations totaling over $230 million in the past 24 hours, with nearly $150 million of these representing long positions, according to Coinglass data. Bitcoin led the pack with a staggering $51 million in liquidated positions, as its price briefly plunged before stabilizing. The overall market sentiment remains wary, with traders watching every tick.
Cautious Moves as Market Anticipates Election and FOMC Meeting
Bitcoin’s sideways price action, alongside a reduction in leveraged perpetual futures positioning from $30 billion to $26 billion, hints at the market’s caution. Analysts at QCP Capital suggest this restrained approach reflects traders’ nerves, as two significant events loom large: the U.S. presidential election on Tuesday and the Federal Reserve’s policy meeting on Thursday. With these events on the horizon, the market appears locked in a holding pattern, awaiting further cues.
As the election draws near, the contest between Kamala Harris and Donald Trump appears closer than ever, with betting odds on Polymarket shifting to align more with recent polls. Trump still leads with a 55% probability, yet his chances have taken a hit from last week’s 66%. This decline mirrors the uncertain political climate, which could impact market sentiment and trigger reactions in the crypto space.
Fed Rate Decision Adds Fuel to Uncertainty
Adding to the tension is the Federal Reserve’s anticipated interest rate cut, with the CME FedWatch tool forecasting a 98.1% probability of a 25 basis-point reduction. This decision, coming right after election day, has traders bracing for potential market shifts. In response, QCP Capital observed a surge in buying activity for $75,000 Bitcoin call options expiring at the end of November, reflecting bullish bets despite the broader atmosphere of caution. Options tied to election day have also gained popularity, signaling expectations of increased volatility.
“We expect the spot price of bitcoin to chop around the current range until we get more clarity on the election results this week, where a Trump win is likely to cause a knee-jerk reaction higher, and vice versa if Kamala wins,” QCP Capital analysts remarked.
Altcoins Steady as Bitcoin Flatlines
In the wider crypto market, Bitcoin is currently trading around $68,500 with minimal movement over the past day, according to The Block’s Price Page. Meanwhile, the GMCI 30 index, which tracks the top 30 cryptocurrencies, posted a slight 0.58% gain, standing at 120.65. While Bitcoin remains in a wait-and-see mode, some altcoins are showing modest growth.
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