Bitcoin
Cryptocurrencies fall as investors await Fed decision, bitcoin falls below $67,000
Cryptocurrencies fell on Tuesday as bitcoin extended its recent slide and investors awaited the Federal Reserve’s next rate decision.
The price of Bitcoin fell more than 4% to $66,475, according to Coin Metrics, extending a decline that began on Friday when bitcoin retreated from the $70,000 level.
Ether fell 6.1% to $3,452.02. Cryptocurrencies in general, along with crypto-related stocks, were in the red. Coin base It is Microstrategy fell more than 4% each, while miners Digital Marathon It is Riot Platforms both lost more than 2%.
Bitcoin’s losses may have been triggered by a wave of long liquidations, which force traders to sell their assets at market prices to pay off their debts. In the last 24 hours, there have been $56 million in bitcoin long liquidations on centralized exchanges, according to CoinGlass.
The market saw another $56 million in bitcoin long liquidations on Thursday ahead of a better-than-expected result. US jobs report for May Friday. Bitcoin fell below $70,000 after briefly testing the level earlier in the month.
See the graph…
Bitcoin Falls Below $67,000
As stock market investors, crypto traders fear that the Federal Reserve will not reduce interest rates this year. The central bank has begun its two-day monetary policy meeting and is expected to make its decision on Wednesday. O Dow Jones Industrial Average lost 272 points on Tuesday, while the S&P 500 fell 0.3%.
“When stocks are sold, other risky assets follow,” said Bartosz Lipiński, CEO of cryptocurrency trading platform Cube.Exchange. “This largely appears as if the market is losing confidence that the Federal Reserve will cut interest rates soon… and heightened fears about the long-term impact of high rates are beginning to take hold.” account.”
“An analysis of the options positioning shows that long-term expectations are for a recovery,” he added. “For now, we may continue to see volatility until there is a clearer picture of the Fed’s plans for the rest of the year.”
Lipiński also said that sales last Tuesday and Friday were further proof of the continued “malaise” in the market.
“Despite ETH spot ETFs apparently being about to hit the US market, there has been no real catalyst to drive prices higher,” he said. “Underlying fundamentals are strong for bitcoin, with supply being accumulated by ETFs, but sentiment has not yet recovered.”