Over $130M in Liquidations as Bitcoin Soars to 3-Week High After Powell’s Rate Cut Promise

The business week ends with high levels of volatility as the price of bitcoin soared to nearly $64,000 for the first time since the beginning of the month.

This rally, which was mostly imitated by altcoins, was possibly fueled by recent developments on the US front and in particular its central bank.

CryptoPotato reported earlier today that BTC had held above $61,000 after yesterday’s failure to conquer $62,000. However, the asset touched that level earlier today after Fed Chairman Jerome Powell said it was time for the US central bank to start cutting interest rates, similar to what they do the ECB and the Bank of Canada over the summer.

After an immediate pullback towards $60,000, the major cryptocurrency returned north an hour ago. This time, the asset broke above $62,000 and $63,000 and moved closer to $64,000 to mark a 3-week high.

This is likely because lower interest rates in the world’s largest economy would mean easier access to funds that could be allocated to risk assets such as cryptocurrencies.

Bitcoin/Price/Chart 23.08.2024. Source: TradingView

Most altcoins have also produced impressive gains over the past day or so. Ethereum is up a little over 5% and now sits near $2,750. DOGE, AVAX, SHIB, DOT and LINK also added between 5 and 8%.

Even more impressive gains came from NEAR (12%), STX (10%), TAO (12%), APT (11%), FET (22%) and SUI (19%).

This substantial volatility has hurt short traders as the total value of liquidated positions has increased to over $130 million, with shorts dominating the charts.

According to CoinGlass, 55,000 traders have been destroyed in the last day.

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