Bitcoin Surges Beyond $51k as Numerous Short Positions Face Liquidation
Cryptocurrency Short Positions Worth Over $130 Million Liquidated as Bitcoin Surges Above $51,000
In the past 24 hours, centralized cryptocurrency exchanges have witnessed the liquidation of over $130 million in cryptocurrency short positions, as reported by Coinglass data.
Bitcoin’s market experienced heightened volatility during this period, with its price surging beyond the $51,000 mark. This sudden price action led to the liquidation of over $93 million in bitcoin positions, with nearly $70 million accounted for by short positions.
Bitcoin’s value has surged by more than 21% since the beginning of February, with the leading cryptocurrency’s dominance now standing at 50%, compared to 16.3% for ether.
On Wednesday, the overall cryptocurrency market capitalization rebounded above $2 trillion — a milestone not reached since April 2022. Bitcoin recorded an almost 3% increase in the past 24 hours, trading at $51,521 as of 5:40 a.m. ET, according to The Block’s Prices Page.
While the cryptocurrency market exhibits strength, U.S. equities experienced a decline over the past 24 hours. On Tuesday, the Dow Jones Industrial Average dropped 412 points or 1.1%, and the S&P 500 fell by 1.1% following the release of the U.S. inflation report for January. The report from the U.S. Labor Department indicated a 0.3% increase in the consumer price index from December to January — up from a 0.2% increase the previous month.
The data suggests that inflation has not cooled as much as expected, reinforcing the belief that the Federal Reserve will not cut rates in March. Currently, markets have priced in a 91.5% chance of a rate pause next month — a notable shift from the consensus one month ago, which anticipated a rate cut in March.
According to the CME FedWatch tool, interest rate traders foresee a 34% possibility of a rate cut at May’s Federal Open Market Committee meeting, along with a significant 63.3% chance of another rate pause.
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