Bitcoin shorts liquidated total $9 million as BTC moves back above $20,000

Must read

CryptoSlate Wrapped Daily: Binance auditor confirms reserves, 3AC founders subpoenaed, and Crypto Twitter drama

CryptoSlate Wrapped Daily: Binance auditor confirms reserves, 3AC founders subpoenaed, and Crypto Twitter drama Liam 'Akiba' Wright · 9 hours ago...

Canada’s Biggest Pension fund CPPI dropped crypto investment plan amid unstable markets

Canada’s Biggest Pension fund CPPI dropped crypto investment plan amid unstable markets Soumen Datta · 10 hours ago · 1...

US DOJ charges former CTO of blockchain company for fraud scheme

US DOJ charges former CTO of blockchain company for fraud scheme Christian Nwobodo · 11 hours ago · 1 min...

ECB’s Fabio Panetta says crypto needs regulation to maintain stability

ECB’s Fabio Panetta says crypto needs regulation to maintain stability Christian Nwobodo · 12 hours ago · 2 min read...

Bitcoin shorts liquidated total $9 million as BTC moves back above $20,000 Bitcoin shorts liquidated total $9 million as BTC moves back above $20,000 Samuel Wan · 3 hours ago · 2 min read

Bitcoin bulls fight back to regain the psychological $20,000 level as macro factors continue to weight heavy.

2 min read

Updated: August 29, 2022 at 5:35 pm

Bitcoin shorts liquidated total $9 million as BTC moves back above $20,000

Cover art/illustration via CryptoSlate

Bitcoin bulls stepped in to stop the price decline on Aug. 29, at 14:00 UTC, spiking BTC as high as $20,300 in the process. The move was accompanied by substantial volume on the hourly chart.

The local downtrend, which bottomed at $19,500 in the early hours of Monday, was triggered by a speech at Jackson Hole, Wyoming, given by Jerome Powell on Friday. The Fed Chair stated that central banks must bear the burden of tackling inflation.

Markets interpreted Powell’s words to mean there is little the Fed can do in its fight to reign in runaway inflation – which remains stuck at 40-year highs.

The next FOMC meeting will take place on September 20-21, with the odds on a third consecutive 75 basis point hike up to two-to-three per Euro zone money markets.

Bitcoin shorts liquidated

Despite the implications of Powell’s speech, crypto bulls fought back to send Bitcoin back above $20,000.

Since the Terra collapse, there have now been five distinct occasions when BTC lost $20,000, only for bulls to recover this key psychological level.

Coinglass showed that $9 million in Bitcoin shorts was liquidated as BTC moved higher. The asset is currently trading at +4% above the $19,500 local bottom.

Bitcoin liquidations
Source: Coinglass.com

Nonetheless, sentiment remains fearful, with macro factors weighing heavy on all markets, including news of record energy prices across the Eurozone.

Stocks feeling the pinch

U.S. stocks slumped as investors adjusted their expectations in line with Powell’s Jackson Hole speech last Friday.

The Nasdaq dropped as much as 1% on expectations that rising yields and interest rate hikes will negatively impact the tech sector. The S&P 500 fared marginally better, experiencing a 0.5% drop on the opening of U.S. trading.

Meanwhile, gold performed as expected in a difficult trading environment. It is currently up +0.2% to $1,753 per ounce.

More articles

Latest article

CryptoSlate Wrapped Daily: Binance auditor confirms reserves, 3AC founders subpoenaed, and Crypto Twitter drama

CryptoSlate Wrapped Daily: Binance auditor confirms reserves, 3AC founders subpoenaed, and Crypto Twitter drama Liam 'Akiba' Wright · 9 hours ago...

Canada’s Biggest Pension fund CPPI dropped crypto investment plan amid unstable markets

Canada’s Biggest Pension fund CPPI dropped crypto investment plan amid unstable markets Soumen Datta · 10 hours ago · 1...

US DOJ charges former CTO of blockchain company for fraud scheme

US DOJ charges former CTO of blockchain company for fraud scheme Christian Nwobodo · 11 hours ago · 1 min...

ECB’s Fabio Panetta says crypto needs regulation to maintain stability

ECB’s Fabio Panetta says crypto needs regulation to maintain stability Christian Nwobodo · 12 hours ago · 2 min read...

Research: Bitcoin held by miners sinks to 1 year lows; Poolin culpable

Bitcoin miners are facing a challenging time due to ongoing price uncertainty and global energy shortages.In addition, macro factors have conspired to raise the...