Bitcoin Bulls Charge Toward $62K as Fed’s Minutes Triggers Market Frenzy

02/09/2024 |

Bitcoin’s price hit $61,838 per coin by 3:45 p.m. EDT on Wednesday, after spending much of the day lingering below the $60,000 mark. The crypto market mirrored the upward movement seen in the S&P 500 and Nasdaq, which both rallied just before the closing bell. This newfound optimism is largely being credited to the Federal Reserve’s minutes report, hinting at a likely rate cut next month.

Fed’s Rate Cut Tease Ignites Mini Bitcoin Spike

The release of the Federal Reserve’s minutes brought a wave of positivity, with markets reacting favorably. The report mentioned that a “vast majority” of Federal Open Market Committee (FOMC) members believed that if economic data remains consistent, “it would likely be appropriate to ease policy at the next meeting.” Following this news, equity markets rebounded, and all four U.S. benchmark indices closed in the green, with the Russell 2000, S&P 500, and Nasdaq leading the charge.

Globally, the crypto market swelled to $2.16 trillion, marking a 2.32% increase over the past day. Bitcoin (BTC) climbed to an intraday peak of $61,838 per coin, and as of Wednesday, the top crypto asset has gained 3.4% against the U.S. dollar. Ethereum (ETH) also experienced a lift, though more modest, rising 1.66% during the day’s trading sessions. Over the past week, BTC is up 4.11%, while ETH remains down by 0.9%.

Due to this uptick, $13.65 million in BTC short positions were liquidated within the past four hours. During the same period, $4.66 million in ETH shorts were wiped out as well. So far today, $22.93 million in BTC shorts have been cleared, along with $8.78 million in ETH shorts. However, ETH took a heavier hit on the long side, with $16.55 million in ether long positions getting wiped out.

In total, $104.76 million in derivatives positions were liquidated, with $57.56 million of those being short positions. Approximately 40,297 traders were liquidated, according to coinglass.com metrics, with the largest liquidation occurring on Binance, where an ETH trader lost $2.98 million. After reaching the $61,838 high, bitcoin faced stiff resistance at $62,000, and as of 4:30 p.m. EDT, BTC is trading at $61,350 per unit.

What do you think about bitcoin’s rise on Wednesday following the release of the Fed’s minutes report? Share your thoughts and opinions about this subject in the comments section below.

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