Bitcoin continues to fluctuate above $66,000, with the overnight trading range soaring above $5,100 at one point, liquidating 50,000 short traders. The U.S. Consumer Price Index (CPI) showed slowing 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. 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 Bitcoin trading pairs included USDT, FDUSD, USD, USDC and KRW, with the Korean won accounting for 2.36% of Bitcoin's global trading volume.
Short traders lost $100 million as the cryptocurrency market soared. The sharp price increase across the entire cryptocurrency economy led to a large number of trader liquidations, with 51,567 traders being eliminated on Wednesday.
In the past 24 hours, derivatives positions were liquidated for $143.43 million, including $98.11 million in cryptocurrency short positions.
Specifically, $45.94 million of short Bitcoin positions and $17.88 million of short Ethereum (ETH) positions were also liquidated. In addition, $6.27 million of short PEPE memecoin positions were liquidated throughout the day.
The latest Bitcoin price rally, driven by a favorable Consumer Price Index report, triggered a wave of liquidations, mainly affecting the wrong side of leveraged positions.
With $127.98 million of derivatives cleared, the event highlighted the high-risk nature of leveraged cryptocurrency trading, where major price movements can create wealth or eliminate investments in an instant.
While the dynamics of leverage bring amplified returns, they also bring huge risks, as shown by the rapid liquidation of many traders' positions on Wednesday.
The U.S. Bitcoin spot ETF received good news overnight. Vanguard, a Wall Street asset management giant that manages $9 trillion, has been slow to enter the Bitcoin spot ETF, but there was a change a few days ago. The company plans to appoint Salim Ramji, a former BlackRock ETF executive, as its new CEO, who has a friendly stance on 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 whether Vanguard Group has decided not to launch its own Bitcoin spot ETF, but the company's move not to offer its customers trading opportunities in the many Bitcoin spot ETF products launched on January 11 this year.However, Ramji did not mention this in the interview.
He said in the interview that it is very important for the company to be consistent in its position, products and services. He has heard the explanation of Vanguard Chief Investment Officer Greg Davis and believes that this is completely in line with the company's investment philosophy and a logical point of view.
Ramji previously headed 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.
CMTrade said that Bitcoin RSI is trading above 70, which may mean that the price is either in a continued upward trend or is simply overbought, so a correction may be formed, in which case look for bearish divergence.
MACD is below the signal line and is positive, and the price may pull back. In addition, the price is above the 20- and 50-period moving averages, which are $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 is supported."
"Another scenario is a downward break of $65,110, which will test $63,690 and $62,840."
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