$280 Million in Crypto Shorts Liquidated as Bitcoin Tops $110K
Bitcoin briefly topped $110,000 Thursday morning, sparking over $331 million in liquidations across the crypto market—the bulk of which were short positions.
The price of Bitcoin has since slipped back to $109,720, up 1.8% on the day according to CoinGecko data—just 1.8% from last month's all-time high of $111,814.
As a result of this movement, over $101 million in short BTC positions were liquidated over the past 24 hours, according to CoinGlass. Ethereum painted a similar picture, with $91.2 million in shorts liquidated. In total, over $280 million in shorts were liquidated across the entire crypto market over the last day.
All of this movement came following the release of the ADP National Employment Report, which showed U.S. private payrolls fell last month for the first time since 2023.
"Following the release, markets swiftly adjusted their expectations for Fed policy, with the probability of a July rate cut rising to 25.3%," an analyst at derivatives exchange Bitunix said in a note shared with Decrypt. "Gold climbed, while the U.S. dollar came under pressure. The crypto market reacted positively, with major assets rebounding amid volatility."
Ethereum has climbed 5.5% over the past 24 hours, according to CoinGecko, as it hovers around $2,600—the highest it's been since mid-June. The global cryptocurrency market cap has fallen 0.3% over the past 24 hours, according to CoinGecko, to a total of $3.48 trillion. Major movers include XRP up 4.9%, Dogecoin 7.3%, and Cardano 7%.
Solana has also jumped 3.6% following the debut of the U.S. Rex-Osprey Solana + Staking ETF, generating $12 million in first-day inflows on Wednesday. The SEC is expected to approve several other crypto ETFs this year, with a basket of other Solana funds waiting in the wings.
U.S. spot Bitcoin ETFs saw inflows of $407.8 million on Wednesday, according to Farside, with Fidelity's FBTC leading the way, taking in $184 million. Ethereum ETFs, meanwhile, saw $1.9 million in outflows on Wednesday according to Farside.
"BTC has broken through its short-term descending trendline," the Bitunix analyst said, noting that the cryptocurrency is, "approaching the key resistance level at $110,348. Support lies in the $105,000 to $102,560 zone; if the price pulls back but holds above these levels, the bullish momentum may continue."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Micron now earns more than Apple! Apple urgently needs chips, Micron holds pricing power.
Micron Technology reported a net profit of $37.7 billion in the fourth fiscal quarter, surpassing Apple's $29.8 billion for the same period, thus becoming the more profitable company for the quarter. The memory shortage has given Micron strong pricing power, with its CEO stating that they “cannot meet customer demand.” The revenue guidance for next quarter is as high as $61.5 billion. Meanwhile, Apple's gross margin continues to be pressured by persistent memory costs, having dropped from 49.3% to a guidance range of 46.5%.
The "Eye of the Storm" in the Global Economy: Debt Crisis in Developed Countries
The IMF warns that developed economies are becoming the "eye of the storm" for global debt risks. Countries such as the United States and France accumulated high levels of debt during periods of low interest rates, but now rising interest rates are pushing up repayment costs, and fiscal consolidation faces political resistance. BofA Securities points out that the United States is facing declining tax revenues, France has structural income decline issues, and the UK and Japan are also under pressure. The deteriorating debt sustainability of developed countries may impact global financial markets through shocks in interest rates and capital flows.
The US market narrative undergoes a "dramatic reversal": shifting from "AI-driven deflation and controllable US debt" to "AI squeezing the bond market, and Bassen unable to control long-term interest rates"
Deutsche Bank points out that the market narrative regarding the U.S. economy has shifted from "AI drives down inflation" to "AI-related bond issuance pushes up U.S. Treasury yields," but pessimism may be overdone. The bank believes that the real risks underestimated by the market are security incidents in the AI ecosystem, failed IPOs, or underwhelming revenues, which could undermine the dollar and support the bond market. In addition, France's fiscal difficulties are putting new pressure on the euro.
Crypto prices
More
