- Bitcoin’s early dip below US$60K led to US$188 million in liquidations, impacting nearly 57K traders.
- However, crypto analyst Michaël van de Poppe hints at a potential trend reversal.
- The recent market dip aligns with US inflation concerns and mixed signals on further Fed rate cuts.
- The Fed’s cautious stance on interest rates follows persistently higher than expected inflation, despite recent cuts.
So far ‘Uptober’ hasn’t really kept up with expectations. Early morning Australian Time, Bitcoin dipped well below the US$60K mark, bottoming out (for now at least) at US$58,930 (AU$87,424).
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That’s a 3.5% decrease from the day prior; although BTC has since started a recovery, gaining 2% since the low, currently trading for US$60,179 (AU$89,289).
Price Drop Sees Almost 57K Traders Liquidated
The price correction caused US$188 million (AU$278.8 million) in liquidations, with 56,969 traders affected. As per Coinglass there were US$54.9 million (AU$81.4 million) in Bitcoin long liquidations alone, with ETH long traders booking a US$31.88 million (AU$47.29 million) loss.
Crypto analyst Michaël van de Poppe believes we are likely going to see a trend reversal soon, or at least that’s what traders are hoping for.
If not, the analyst wrote on platform X, the next port of call could be “around $55K” which would catch many traders off-guard. Such a level could be a good buying opportunity or cause a much deeper correction.
Fed Divided Over Further Rate Cuts
But how did we get to this ‘mini crash’? Well, the correction comes as US inflation proves stickier than expected. Following a first rate cut in September many traders expect a second cut in November.
In September, the US Consumer Price Index (CPI-U) increased by 0.2 percent for the third consecutive month and 2.4 percent year-over-year.
The core consumer price index, which excludes food and energy is also up, by 0.3 percent.
Chicago Federal Reserve President Austan Goolsbee told CNBC, they’re “basically trying to freeze dual target performance exactly where it is right now”.
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And according to Bloomberg, three Fed policymakers believe there will be two more rate cuts. Meanwhile, a fourth, Raphael Bostic, president of the Atlanta Fed, said in an interview with the Wall Street Journal that there may only be one more cut in 2024.
I am totally comfortable with skipping a meeting if the data suggests that’s appropriate.
Raphael Bostic, president of the Atlanta Fed
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