Crypto currency markets today seem to be in a state of panic. The usual pre-Fed meeting activities are happening again. The crypto market experiences a decline in the morning hours on the days of the Fed’s meeting. In the evening, the direction becomes clear based on Powell’s statements, and the morning losses are recovered. However, it is true that the market is in an atmosphere of fear.
Powell’s Harsh Speech Expected
The cryptocurrency Bitcoin was below $58,000 while writing this article. There was a decline of about $2,000 in price. As known, there is a Fed meeting this evening. The interest decision will be announced, and Fed Chairman Jerome Powell will speak.
The possibility of Powell’s speech being harsh has unsettled crypto investors. Frankly, the drop in BTC reflects this possibility. Situations that would require a harsh speech are also present. This is because the consumer confidence index data released yesterday came in well below expectations.
Millions Wiped from Long and Short Positions
Coinglass data shows that millions of dollars have been wiped from the crypto market in the last 24 hours. A total of $455 million in positions were liquidated. On the other hand, most of these positions were long positions. The figure was at the $402 million level.
On the other hand, there was a liquidation of $53 million in short focused positions. It is seen that 139,752 investors liquidated their positions in the last 24 hours. Today, analyst Michael van de Poppe made the following comment:
“I think we’ve hit the bottom; because Altcoins are starting to revive in Bitcoin pairs. This shows that the rotation has begun. Bitcoin’s dominance has probably peaked, which indicates that Altcoins could rise again. Bitcoin is currently in a correction process. It is currently 20% below peak levels and may face more negativity in the coming period. If the correction continues, the green areas between $56-58,000 should be watched. Altcoins might start rising first.
The flagship of cryptocurrencies, Bitcoin, experienced a pullback to $57,100 while writing this article. However, there was some recovery afterward, and the price moved towards $57,700 levels.
