- BTC saw an increase in long-term liquidations over the past 24 hours.
- This comes as the market awaits the release of the CPI report and the outcome of the Federal Reserve meeting.
Bitcoins [BTC] The price corrected to almost $66,000 during the intraday trading session on June 11, ahead of the US inflation report and the June 12 FOMC meeting.
However, the coin has since recovered somewhat, exchanging hands for $67,243 at the time of writing, according to CoinMarketCaps facts.
As reported by CNBCEconomists expect the May consumer price index (CPI) to show a modest increase of 0.1% from April. However, this would still translate into an annual price increase of 3.4%.
The Federal Reserve is expected to do nothing regarding interest rates.
However, officials will take other actions, such as releasing quarterly updates to their Summary of Economic Projections, which could be affected by the CPI report.
Long traders are bearing the brunt
BTC’s price drop on June 11 led to a wave of long liquidations in the futures market. According to Mint glassLiquidations on that day totaled $67 million, 77% of which were long-term liquidations.
Source: Coinglass
Liquidations occur in an asset’s derivatives market when a trader’s position is forcibly closed due to insufficient funds to maintain it.
Long liquidations occur when the value of an asset suddenly drops, forcing traders who have open positions in favor of a price increase to exit their positions.
AMBCrypto found that on the day in question, long liquidations of BTC totaled $52 million, while short liquidations totaled $14 million.
Bitcoin will rise?
While many long traders have fallen into losses over the past 24 hours, market observers noted that the coin’s historical performance indicates a possible recovery in no time.
In a after On
BTC’s price fell 10% in the 48 hours before these meetings and fully recovered on the day of the meetings. According to Gumshoe, “The market always prices in overly bearish statements and then reverses.”
Read Bitcoin’s [BTC] Price forecast 2024-2025
Another crypto analyst, Jelle, shared the same feelings. The analyst opined that the Federal Reserve’s meetings “have been good for the market lately.”
According to Jelle, the past four FOMC events have coincided with local lows and resulted in a rally of more than 20% for the leading crypto asset.