U.S. spot Bitcoin ETFs saw net outflows of $200 million on June 11, the highest net outflows in a single trading day since May 1, when net outflows reached $564 million.
The Grayscale Bitcoin Trust (GBTC) saw the highest net outflows of $121 million, while Ark Invest and 21Shares’s ETF ARKB saw net outflows of $56 million on the same day.
Notably, GBTC’s net outflows on June 11 dwarfed its previous outflows, which exceeded $113 million across three consecutive trading days by approximately $8 million.
At the time of writing, the Bitcoin price is currently $67,449 after having dropped as low as $66,207 in the past 24 hours, according to CoinGecko. The drop triggered at least $245 million worth of long contracts to be liquidated yesterday.
Bitcoin Price Plunges as $245 Million in Crypto Longs Are Liquidated
Bitcoin's price is sinking, dropping by 5% over the last 24 hours and prompting a growing wave of liquidations across the crypto ecosystem, totaling $265 million over the past 24 hours. As of this writing, Bitcoin is sitting at a price of $66,548, down from a 24-hour peak above $70,000. Crypto long positions have been most severely affected by the price action, with some $245 million in longs liquidated over the past day, per data from CoinGlass, including about $57 million in Bitcoin long posit...
Investors are likely erring on the side of caution ahead of the crucial Federal Open Markets Committee (FOMC) meeting, after which Fed Chair Jerome Powell will announce the committee’s decision on interest rates.
Market participants are not expecting any change in interest rates, with 99.4% of investors predicting the interest rate to remain at the current level of 525-550 bps, according to the CME FedWatch Tool.
While interest rates might remain unchanged, Powell’s commentary will play a huge role in the way markets react. A dovish stance will likely see the price of risk assets soar, while a hawkish stance will further dampen investor confidence.
Bitcoin Up 3.5% as US Data Shows Consumer Prices Slowed Their Climb in April
Bitcoin’s price has climbed after U.S. data showed that inflation was stickier than expected in April. Consumer prices were 3.4% higher in April than they were this time last year. That's a marked slow down in rising prices compared to March's 3.7%, according to the U.S. Bureau of Labor Statistics. Immediately after BLS released its new Consumer Price Index data, the Bitcoin price now stands at $63,142, CoinGecko data shows. That’s a 3% gain in the past 24-hour period and 1.4% higher than it was...
Another factor that is likely spooking investors is the U.S. Consumer Price Index (CPI) report, which too will be revealed later today. A higher-than-expected CPI print will likely delay interest rate cuts. The FOMC has said it will keep its eye sharply on the core CPI, which was last reported to be 3.4% in April—showing that inflation has been slowing down, but it is still well above the Fed’s 2% target.
Last month, European digital asset manager CoinShares shared a report that indicated that the price action of Bitcoin is largely dictated by the actions taken by the Federal Reserve.
Broadly speaking, crypto investors have been hoping to see the Fed lower interest rates. It’s historically been the case that lower interest rates make risky assets, like stocks and cryptocurrencies, more appealing to investors.
Elizabeth Warren's Latest Crypto Crusade: Bitcoin Mining In Iran
U.S. Sen. Elizabeth Warren is sounding yet another alarm about the ills of cryptocurrency; this time focused on cryptocurrency mining operations in Iran that she claims are financing Hamas and other terrorist groups around the world. In an open letter to the Biden Administration—co-signed by Sen. Angus King—Warren asked the secretaries of Defense and Treasury as well as the White House National Security Advisor about the administration’s efforts to “combat Iran’s rampant evasion of U.S. and inte...
But now the call for lower interest rates has made for strange bedfellows.
U.S. Sen. Elizabeth Warren—who has become famous for her anti-crypto rhetoric—has teamed up with Sens. Jacky Rosen and John Hickenlooper to pen a letter asking Jerome Powell to lower interest rates. In it, they claim that higher interest rates are having an adverse effect on the U.S. economy.
“The Fed’s monetary policy is not helping to reduce inflation. Indeed, it is driving up housing and auto insurance costs—two of the key drivers of inflation—threatening the health of the economy and risking a recession that could push thousands of American workers out of their jobs,” the wrote. “You have kept interest rates too high for too long: it is time to cut rates.”
Edited by Stacy Elliott.
