Cryptocurrency Market Falls After Recent Gains
The cryptocurrency market is down on Wednesday after falling the day before. Over the last 24 hours, more than $680 million in leveraged positions were liquidated. Most of these, 77%, were long positions. This shows many traders were too optimistic.
Market Drops Due to Profit-Taking and Economic Concerns
The week started well for crypto. Bitcoin (BTC) hit a new high of $126,199 on Monday. Major altcoins also rose with BTC. But on Tuesday, profit-taking pushed BTC down over 2.5%, closing below $121,500. A possible US government shutdown in its second week added to market worries.
On Wednesday, major tokens like Ethereum (ETH), Ripple (XRP), Cardano (ADA), and popular memecoins saw significant price drops. This caused many liquidations, including the largest one on the OKX exchange. There, a BTC-USDT-SWAP position worth $8.74 million was liquidated.
Investor Sentiment Cools Ahead of Key US Events
- The Fear and Greed Index fell to 60 on Wednesday from 74 on Sunday.
- This shows investors are less greedy and more cautious now.
- Attention is on the Federal Open Market Committee (FOMC) meeting minutes due Wednesday.
- Federal Reserve Chair Jerome Powell’s speech on Thursday will also be important.
- These events could affect interest rates, the US Dollar, and Bitcoin’s price.
