Markets
Massive Liquidations of $170 Million Hit Crypto Market Ahead of Fed Announcement by U.Today
U.Today – The cryptocurrency market is currently experiencing selling pressure, with nearly $170 million in liquidations reported.
According to CoinGlass data, $160.67 million was spent on cryptocurrency liquidations, with a larger share of $136 million being bullish bets.
Traders took long positions over the weekend, reaching nearly $70,000 in Monday’s trading session, a trend that is now “fading” due to recent concerns about US government selling and the outcome of the Fed meeting.
Bitcoin and the entire cryptocurrency market have plunged as traders took note of signs that the U.S. government may be selling off parts of its large cryptocurrency holdings. A wallet linked to the U.S. government moved $2 billion in Bitcoin to a new address on Monday, according to blockchain research firm Arkham Intelligence.
Bitcoin fell to a low of $65,875 on Tuesday before rallying slightly to trade around $66,330 at press time. On Monday, the world’s largest cryptocurrency approached $70,000 for the first time since mid-June.
At press time, most cryptocurrencies were also in the red.
Fed decision nears
Investors are closely monitoring the outcome of the Federal Reserve’s latest policy meeting, which is expected to provide crucial insights into the future direction of interest rates and monetary policy.
The Federal Reserve’s July meeting will begin Tuesday and end Wednesday with a monetary policy decision and a press conference by Fed Chairman Jerome Powell.
Markets are generally expecting the central bank to keep interest rates unchanged this week, but many investors are hoping that policymakers will provide fresh signals on the outlook for rates.
Key economic data is due this Tuesday. Later this week, the ADP private payrolls report is due, as is the July jobs report, which includes nonfarm payrolls and unemployment statistics.