Bitcoin’s new all-time high has certainly caught some bears off guard. Overall, nearly half a billion in short positions got liquidated today — the biggest bear squeeze since May 6. After today’s FOMC Minutes were released, the market reacted quickly to the reports that the Fed may be inclined to an interest rate cut as soon as the July meeting.
The report led to a rapid capital inflow into crypto, as investors looked to capitalize on the potential for looser monetary conditions. By this afternoon, Bitcoin surged past $112,000 for the first time in history, which also triggered a cascade of liquidations from traders shorting the asset.
CoinGlass data reveals that over $480 million in short positions were wiped out in the last 24 hours. Bitcoin alone was responsible for over $200 million in liquidations. A total of 106,930 traders got their positions wiped out today, marking the largest bear hunt since May 6.
The largest single liquidation happened on the crypto exchange HTX, where a $51.56 million BTC-USDT short position was wiped out in one move. Short positions make up for over 95% of all liquidations across major cryptocurrency exchanges.
Traders were likely caught off guard as they were expecting to see a rejection near the $111k level. However, much to their surprise, Bitcoin continued its path forward, reaching a new all-time high.
The sharp move not only flushed out overleveraged shorts but also reignited bullish momentum across the broader crypto market. Funding rates also spiked on this date, leading the total cryptocurrency market capitalization to gain over $15 billion in a single day.
Bitcoin is now trading at $111,543 as investors likely wait for further data that could rekindle the rally. Next week, the U.S. Consumer Price Index (CPI) will give us a better sense of how the Fed will deal with monetary policy, and what to expect by July 29’s FOMC meeting.
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