Massive Bitcoin liquidations as market awaits US Fed rate hike

The liquidations rush coincided with a 4.7% surge in Bitcoin price, plus a brief trip beyond the resistance level that saw the price climb to $41,500.

Crypto generated over $200m worth of liquidations in the space of 24 hours, and Bitcoin was responsible for over half of that sum, according to data presented by Coinglass on March 16th. The majority of Bitcoin liquidations was carried out on Okex.

Bitcoin has stayed within its 50-day moving average for 40 sessions, Bloomberg reports, making the recent period the longest stretch of range trading since October 2020.

The situation remains in a sort of uneasy balance as investors await the US Fed’s decision on interest rates, which could set the scene for a test of crypto hedging capabilities. Analysts expect the first raise since 2018 as inflation cuts across the world, with the probability of a recession in the US now at 33%, according to the CNBN Fed Survey.