FX168 Financial News Agency (Asia Pacific) reported on Thursday (May 16) that Bitcoin continued to fluctuate above $66,000, and the overnight trading range once soared to more than $5,100, liquidating 50,000 short traders. The US Consumer Price Index (CPI) showed a slowdown in inflation, which the market interpreted as a signal that the Federal Reserve may maintain loose monetary policy.
Bitcoin peaked at $66,461 per coin on Bitstamp, and as a result, the entire cryptocurrency market rose 6.2%, resulting in 51,567 traders being liquidated on various cryptocurrency derivatives exchanges in a single day.
On Wednesday, the main trading pairs of Bitcoin included USDT, FDUSD, USD, USDC and KRW, among which the Korean won accounted for 2.36% of Bitcoin's global trading volume.
Short traders lose $100 million as cryptocurrency markets surge. The sharp rise in prices across the cryptoeconomy has led to a large number of trader liquidations, with 51,567 traders wiped out on Wednesday. In the past 24 hours, $143.43 million in derivatives positions were liquidated, including $98.11 million in cryptocurrency short positions.
Specifically, $45.94 million of Bitcoin short positions and $17.88 million of Ethereum (ETH) short positions were also liquidated. In addition, $6.27 million of PEPE memecoin short positions were liquidated throughout the day.
The latest Bitcoin price rally, driven by a favorable Consumer Price Index report, triggered a wave of liquidations, primarily affecting those on the wrong side of leveraged positions.
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With $127.98 million in derivatives wiped out, the incident highlighted the risky nature of leveraged cryptocurrency trading, where major price moves can create wealth or wipe out investments in an instant.
The dynamic of leverage, while delivering amplified gains, also carries significant risks, as the rapid liquidation of numerous traders’ positions on Wednesday demonstrated.
There was good news for the US Bitcoin spot ETF overnight. Vanguard, the Wall Street asset management giant that manages $9 trillion, has been slow to enter the Bitcoin spot ETF, but there was an unusual move a few days ago. The company plans to appoint former BlackRock ETF executive Salim Ramji as the new CEO, who holds a friendly attitude towards cryptocurrencies.
But Ramji, who will take office on July 8, said he has no intention of launching a Bitcoin spot ETF.
What has caused so much discussion is not Vanguard’s decision not to launch its own bitcoin spot ETF, but the company’s move to not offer its clients access to the many bitcoin spot ETF products that launched on January 11 this year. However, Ramji did not mention this in the interview.
He said in an interview that it is very important for the company to maintain consistency in its position, products and services. He has heard the explanation of Vanguard Chief Investment Officer Greg Davis and believes that this is completely consistent with the company's investment philosophy and is a logical point of view.
Previously, Ramji was in charge of the global iShares business at BlackRock and played an important role in the company's decision to launch a Bitcoin spot ETF. He left BlackRock in January this year.
Bitcoin Technical Analysis
CMTrade said that Bitcoin RSI is trading above 70, which could mean that the price is either in a continued uptrend or is simply overbought, so a correction could form, in which case look for bearish divergences.
The MACD is below its signal line and is positive, suggesting a possible price correction.
Moreover, the price is above the 20 and 50-period moving averages at $65,608 and $63,626 respectively.
“Our pivot point is at $65,110 and our preference is to look for $68,900 as long as $65,110 holds support.”
“Another scenario is a downside breakout of $65,110 which would lead to a test of $63,690 and $62,840.”
