Bitcoin Pumps as Fed Signals Rate Pause, $415 Million in Shorts Get Rekt
Bitcoin Pumps as Fed Signals Rate Pause, $415 Million in Shorts Get Rekt
The liquidation cascade has been sudden, with the bulk of those short bets getting force-closed in just the last hour: all in all, more than $329 million in shorts have been liquidated in the past hour, with $86 million coming from Bitcoin bets alone.
That can be considered a short squeeze: rising prices force short sellers to buy back their positions to limit losses, and that buying pushes prices up even further. It's the same mechanic that drove a $570 million liquidation wave last month, when Bitcoin rebounded from around $57,000.
What's next
The next test lands fast. The Bureau of Labor Statistics releases the August jobs report Friday morning, the last major economic release before the Fed's September 15-16 meeting.
Waller himself expects little change: job creation has averaged 60,000 a month through July, and unemployment held at 4.1%.
A weak reading wouldn't be unprecedented. July's jobs miss knocked rate-hike odds down on its own the month before—proof a single report can move the number as much as a Fed speech can.
This article has been published in decrypt.co via Yahoo News.
Bitcoin Pumps as Fed Signals Rate Pause, $415 Million in Shorts Get Rekt
Stocks and crypto rallied together after Governor Christopher Waller said he could back holding rates steady, with short sellers absorbing the brunt of the squeeze.
finance.yahoo.com
