In the past 60 minutes, over $112 million longs have been liquidated as traders de-risk in anticipation of the FOMC minutes.
Bitcoin slipped below the $90,000 psychological levels, blowing millions in long positions out of the water.
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$115 Million Longs Wiped Out Amid FOMC Minutes Jitters
Data on Coinglass shows that over $112 million in long positions have been liquidated over the past hour. These positions were flushed out as the Bitcoin price dipped below the $90,000 psychological level, testing a seven-month low.
Bitcoin (BTC) Price Performance. Source: TradingViewMeanwhile, the drop was not limited to the Bitcoin, as crypto stocks also registered losses, following the pioneer crypto’s fall to a 7-month low.
It comes ahead of the October FOMC minutes, which is barely an hour out, suggesting investors are de-risking.
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Beyond crypto and related stocks, indices were also down, with the Nasdaq and S&P 500 turning negative.
This drop comes barely an hour before the October FOMC minutes release, with sentiment already reflected on social media.
Amid the anticipation, US President Trump said Fed chair Jerome Powell is “grossly incompetent,” citing too high interest rates.
Meanwhile, the Bureau of Labor Statistics has also revealed that it will not publish the October Jobs report. This gap likely steps from the recently concluded US government shutdown, which saw authorities run basically blind.
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Based on this gap in the October Jobs report, December Fed rate cut bets have dwindled, with nearly 70% anticipating policymakers will hold interest rates steady.
Interest Rate Cut Probabilities. Source: CME FedWatch ToolSome analysts also ascribe the prevailing bearish sentiment to FUD (fear, uncertainty, and doubt), as institutional players signal a lack of conviction for BTC.
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This is seen with ETF outflows from the likes of BlackRock, which the asset manager posting record negative flows of on Tuesday.
Even as the Bitcoin price continues to drop, some analysts say the downside potential remains very much alive, potentially as low as $70,000 in the near term, or worse.
As of this writing, the Bitcoin price was trading for $88,977, down by almost 5% in the last 24 hours.
Source: https://beincrypto.com/nearly-115-million-longs-liquidated-an-hour-to-october-fomc-minutes-release/
