Bitcoin Shorts Liquidated in Response to Tuesday’s Price Action
The recent price action has led to the liquidation of more than $60 million in cryptocurrency short positions, according to data from Coinglass. Over the past 24 hours, leveraged bitcoin positions that were liquidated amounted to more than $40 million, with shorts accounting for over $24 million.
Bitcoin Shows a 2% Increase in 24 Hours
In the past 24 hours, the leading digital asset by market capitalization has experienced a growth of over 2%. As of 12:00 p.m., bitcoin was being traded at $43,201.
Market Anticipates Fed Rate Pause at FOMC Meeting
Today’s rise in bitcoin price aligns with the market’s anticipation of a rate pause by the Federal Reserve during this week’s FOMC meeting. The CME FedWatch tool suggests a 97.9% probability that the Fed funds rate will remain within the current target range of 5.25%–5.50%.
Ryze Labs: Bitcoin’s “Risk-On” Asset Classification Supports Bull Market Performance
Ryze Labs highlights bitcoin’s classification as a “risk-on” asset, indicating its potential to outperform in a robust bull market. The likelihood of a rate pause and the possibility of rate cuts could further facilitate this scenario.
However, Mathew Graham, the founder of Ryze Labs, believes that the market has mostly factored in the expectation of a rate pause. He stated, “The Fed is already expected to pause rates, so this week’s FOMC meeting is probably mostly priced in. However, should the Fed lower interest rates more than anticipated, this would certainly be bullish for bitcoin prices.”
Ryze Labs analysts also anticipate continued institutional interest in bitcoin, expecting increased inflows to spot bitcoin ETFs as fund managers engage in sales cycles and sales teams familiarize themselves with this new product.