Bitcoin price rallied above $43,000 due to volatile price movements, with over $66 million liquidated in leveraged positions in the cryptocurrency.
The world’s largest cryptocurrency by market capitalization was up more than 1.8% in the past 24 hours to $43,317 as of 12pm ET, according to The Block’s price page.
This price movement resulted in more than $15 million in liquidations in leveraged positions in Bitcoin, according to data from Coinglass.
Macro conditions may reduce the impact of halving.
While the hype surrounding the approval of multiple Spot Bitcoin ETFs in January is starting to die down, two important undertones in the BTC story are set to become clear in the coming months. That is the expected April halving and the possibility that the Federal Reserve will start cutting interest rates. May cycle.
However, ON analysts believe that the impact of the halving could be weakened by tightening macroeconomic conditions. “The positive impact of Bitcoin halving may be postponed or evened out by high interest rate pressures in financial markets,” Ruslan Rienka, Head of Markets at Euhodor, told The Block. Ta.
Lienka added that compared to previous halving events, this one will take place amid macroeconomic conditions that “may have a different impact on prices.”
Expected Fed rate cut delayed
On Sunday, Federal Reserve Chairman Jerome Powell ruled out an early rate cut in 2024 in an interview with CBS’ 60 Minutes.
“We have said in an interview that we would like to have more confidence that inflation is coming down to 2%,” Powell said in an interview. I think it’s low.” That’s after 7 weeks. ”
Rienka added that while the market currently expects a rate cut in May, “market sentiment changes rapidly based on investor sentiment, so the date could be adjusted quickly.”
“We expect capital flows into risk assets to be constrained and under pressure until at least the middle of this year, but this is a positive scenario,” he said.
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