The cryptocurrency market experienced significant volatility over the past 24 hours, leading to a surge in liquidations on centralized exchanges as Bitcoin dropped below $67,000.
Data from CoinGlass revealed over $427 million in liquidations, primarily affecting long positions amounting to $342 million. Bitcoin saw substantial losses, with over $130 million liquidated, coinciding with its decline from above $71,000 to around $66,500.
Also, Bitcoin ETF outflows resurface as a significant concern in the cryptocurrency market, with Grayscale’s GBTC reporting outflows of $302 million on April 1, surpassing expectations.
This contributed to Bitcoin ETFs collectively experiencing a net outflow of $85.7 million. The diminished demand for Bitcoin ETFs coincides with bond traders revising their expectations for Federal Reserve rate cuts, with the probability of a rate cut in June dropping below 50%. This has put pressure on risk assets like Bitcoin, which typically benefit from looser monetary policies.
Federal Reserve officials, including Christopher Waller and Raphael Bostic, have indicated a potential delay in rate cuts due to disappointing inflation data, with only a single rate cut likely in 2024.
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