Bitcoin has jumped in price following the Federal Reserve's decision yesterday to cut interest rates—and traders who shorted the are being wiped out in a growing wave of liquidations.
The biggest digital coin's price is now sitting at $63,199 per coin after jumping more than 6% in 24 hours, CoinGecko shows.
In the past day, over $154 million in short positions have been liquidated across all cryptocurrencies, CoinGlass data shows. Of that figure, nearly $74 million were Bitcoin positions.
Short positions are held by traders who bet the price of an asset going down in the future. If a short is liquidated, then the trader has lost the bet and their position is closed.
The rest of the crypto market is also up significantly. Ethereum's price currently stands at $2,437 per coin after rising over 6% in the past 24 hours. More than $33 million in positions shorting the asset's price have been closed.
'Oh It Did Go Through!': Bitcoin Boosters Get Trump to Buy Burgers With BTC
Days after announcing the launch of decentralized finance (DeFi) platform World Liberty Financial during an interview with Decrypt sister company Rug Radio, former U.S. President Donald Trump used Bitcoin to buy burgers during a stop at PubKey Bitcoin bar in Manhattan on Wednesday. Bitcoin backers at the bar helped Trump with the process, which included scanning a QR code with a smartphone and then apparently approving the transaction. After a moment of uncertainty over whether the transaction w...
The Federal Reserve slashed interest rates by 50 basis points on Wednesday after hiking them to a 23-year high back in 2022. Bitcoin and other cryptocurrencies, along with crypto and tech stocks, have since been rising as a result. Riskier investments such as digital assets and U.S. equities tend to do better in a low interest rate environment.
Bitcoin hit an all-time high of $73,737 in March thanks to the historic approval of exchange-traded funds (ETFs) giving traditional investors exposure to the coin. But it has since struggled to hit that point again.
Bitcoin Usually Suffers in September—But 'Uptober' Is Right Around the Corner
September has been historically a difficult month for U.S. stocks. And when it comes to the Bitcoin market, the so-called “September Effect” could be just as prevalent—and the performance of the price of BTC this first week lends credence to the theory. The Wall Street phenomenon has been well documented for nearly a century. Since 1929, the S&P 500 has declined in September 55% of the time, according to Open Markets, “by far the most out of any month, and the only individual month that has decl...
Stocks typically do badly in September, data shows, and Bitcoin has broadly followed that trend—it's the worst month on average for the asset over the past 11 years. But October and November historically are boom months for Bitcoin, and the so-called Uptober swing might be starting early due to the Fed.
Edited by Andrew Hayward
