Markets
Massive Liquidations of $170 Million Hit Crypto Market Ahead of Fed Announcement
Tom Wabold Olajide
Crypto Investors Brace for Fed Outcome Amid $170M Market Liquidation
Read U.TODAY on
Google News
The cryptocurrency market is currently facing selling pressure, with nearly $170 million reported in liquidations.
According to CoinGlass data$160.67 million went to cryptocurrency liquidations, with a larger portion, $136 million, represented by bullish bets.
Traders took long positions over the weekend, with Bitcoin hitting nearly $70,000 in Monday’s trading session, a trend that is now in a “sell-off” due to recent concerns about a sell-off from the U.S. government and the outcome of the Fed meeting.
Bitcoin and the entire cryptocurrency market has plummeted as traders took note of signs that the U.S. government may be selling off parts of its large cryptocurrency holdings. A U.S. government-linked wallet 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 The Federal Reserve last policy meeting, which should 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.
About the author
Tom Wabold Olajide
Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and trading forecasts on estimated market trends. Tomiwabold holds a bachelor’s degree from the University of Lagos.