Record Breaker Markets of $ 1 Billion Bitcoin Futures Liquidation Sinks

If you thought the bloodshed was over (at least in this cycle), we have some bad news for you.

The crypto withdrawal lasted overnight and continued until Tuesday morning. Bitcoin according to Nomics, it has fallen 4.5% over the past 24 hours, increasing its losses for the second day in a row.

From the high of $ 61,500 on Sunday, Bitcoin traded up to $ 53,000 over the past 24 hours, representing more than a 10% slide. For futures market, the picture was even darker.

According to a tweet from Glassnode co-founders Jan & Yann, there were $ 500 million liquidations of Bitcoin long positions in one hour – bets that the price would rise. According to Glassnode, this is the most that has yet to be liquidated. The founders promoted the huge losses to ‘excessive greed in the system’.

But others pointed out that the losses were even greater than that. The exchange company Bybt reported that the losses amounted to $ 1 billion north.

According to the Fear and Greed Index, such large losses have had an impact on market sentiment. During the last bull run, sentiment was steady throughout the 90s, indicating that greed has increased the price. This month, however, sentiment fell back to the 70s, suggesting that the February exuberance had cooled.

Take a closer look at other market measurements Markmelk, sentiment has retreated into neutral territory, suggesting that investors are sitting this round of turmoil waiting to see if this slump is part of Bitcoin’s broader pattern of training and withdrawals or if something bigger is going on.

Looking at what’s happening on Wall Street, crypto investors will have reasons to be cheerful.

The Dow Jones rose more than 100 points and the S&P 500 index also rose to new highs, thanks to the finalization of the $ 1.9 billion stimulus bill ready to boost consumer spending and economic growth too awake.

As a result, a number of economists have improved their expectations of the broader US economy.

Goldman Sachs predicted the fiscal rescue package would give the economy another impetus in 2021, and it is estimated that gross domestic product will expand by 6% in the first quarter.

But with a large number of good news comes a tantalizing feeling that things may not be going well. Markets will comment on the remarks of Fed Chairman Jerome Powell – who will make a statement this week – on tips on whether the central bank is worried about movements in the bond market and an economy that could overheat.