Markets

Cryptocurrency liquidations rise as bearishness dominates the market

Bitcoin (BTC) Down 2.5%, Cryptocurrency Liquidations Arrived almost $140 million in the past 24 hours. But why are merchants still so greedy?

The cryptocurrency market was outpaced by bears, with bitcoin dropping nearly 2.5% to $28,600. While the price of Bitcoin and altcoins is falling, market sentiment has a different story to tell.

Greedy traders despite liquidations

As of this writing, the Crypto Fear and Greed Index is at 63 points, which indicates the greedy sentiment in the market. Alternative.me The index measures by analyzing emotions and sentiments in the market through multiple sources.

source: Alternative.me

But in contrast, the downward movement in the market resulted in $136.85 million worth of deals being liquidated in the last 24 hours. According to Coinglass, 32,738 traders faced liquidation, while OKX exchange liquidated one trade worth $5.62 million.

Of the total liquidations, 78.3% were buys worth approximately $107.17 million.

Coinglass cryptocurrency filter data
source: Coinglass

Quantitative easing due to bank meltdowns

The US banking crisis has consumed the 14th largest bank in the country – First Republic Bank. according to ReutersJPMorgan Chase & Co. acquired on certain assets and liabilities of First Republic Bank.

Today, 84 of the bank’s branches will reopen as branches of JPMorgan.

encoder operator Hettich Malviya believes that there is a high potential for quantitative easing due to the US banking crisis. He told BeInCrypto:

First Republic Bank stock has fallen recently, making the US banking crisis worse. There is a high possibility of quantitative easing through additional monetary circulation. This makes people stay long in the market as the new money in circulation can make a short term bull case for Bitcoin.

After the fall of major banks like Silicon Valley Bank, the Federal Reserve (Fed) pumped $300 million into bailing out the banking system. Also, the Fed is widely expected to hold off on raising interest rates from July.

Robert Reich, a professor of public policy, believes that “the logical thing is for the Fed to hold off on raising interest rates long enough to allow the financial system to calm down. Besides, inflation is coming down, albeit slowly. So there is no reason to risk more financial turmoil.”

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Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.

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