Bittime - In just 17 hours after touching the level of $60,760 per unit, the value of Bitcoin (BTC) showed its strength again by breaking through the $68,000 mark. This increase occurred after the latest meeting of the Federal Open Market Committee (FOMC) which decided to maintain the benchmark interest rate.
The positive impact of this decision fueled optimism in the crypto market, pushing Bitcoin to jump 6.8% versus the US dollar and bringing the entire crypto market up 5.9%.
Crypto Market Excited, Bitcoin (BTC) Shines Again
The crypto market was shrouded in doubt on Tuesday ahead of the FOMC meeting. However, after the announcement of maintaining the benchmark interest rate, Bitcoin (BTC) showed a remarkable revival. From around $65,500, BTC shot up to hit $68,058 per coin at 6:15 pm Eastern Time (ET) on Wednesday.
The lively trading in the crypto market is currently clearly visible with transaction volume reaching $207 billion. BTC's contribution to this trade was quite significant, reaching $72.93 billion. Currently, BTC is trading at around $67,432 per unit as of 6:55 pm ET, slightly below the $68,000 level. The dominant trading pair for BTC is currently Tether (USDT) , followed by USDC and the US dollar.
Circle's USDC took fourth place as the most traded pair with Bitcoin, while the South Korean won came in fifth, accounting for 3.36% of the day's total global transactions. The leading spot crypto asset exchanges based on trading volume are Binance, Coinbase, Bybit, Okx, and Upbit.
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Bitcoin (BTC) Short Squeeze Phenomenon and Its Impact
Although the global weighted average price of Bitcoin (BTC) is at $67,631 per unit, on South Korean crypto trading platforms such as Upbit and Bithumb, BTC is trading at a premium, reaching $74,993 per coin. An interesting phenomenon occurred on Wednesday, where derivatives exchanges witnessed many short sellers incurring huge losses. Liquidation of BTC short positions reached a fantastic figure, namely $151.69 million.
At the same time, more than $128 million in long Ethereum (ETH) positions were also eliminated from leveraged trading. Overall, a total of $444.66 million was liquidated throughout the day in the crypto market. These liquidations consisted of $241.03 million in long positions and $203.63 million in short positions across leading derivatives exchanges, causing a major shakeout in the market. By 8:11 pm on Wednesday evening, BTC was back up to around $67,877.
BTC/USDT Bitcoin Price Today
Source: Bittime.com
On March 21, 2024, the price of Bitcoin BTC/USDT was at $66,903 per coin, up 8.54% in 24 hours.
Also Read How To Buy Crypto:
Analysis and Future Prospects of Bitcoin (BTC).
The latest metrics from intotheblock.com show that 96% of Bitcoin (BTC) holders are currently in profit. Over the past week, there were inflows of $19.79 billion and outflows of $20 billion on crypto exchanges. Apart from that, this week also recorded BTC transactions above $100,000 reaching $170 billion.
Bitcoin's sharp rise after the FOMC announcement surprised many parties. The decision to maintain the benchmark interest rate seems to have been welcomed positively by the market, fueling optimism towards crypto assets. The surge in BTC prices was also accompanied by massive liquidations of short positions, which further pushed the price up.
Analysts estimate that Bitcoin (BTC)'s future movements will depend heavily on global market sentiment and central bank monetary policy. If inflation expectations subside and monetary policy remains accommodative, Bitcoin has the potential to continue its price increase. However, if there is an increase in interest rates or broader economic turmoil, Bitcoin could experience another correction.
Also Read: Crypto Asset Recommendations for Staking during the 2024 Bear Market
Conclusion
The significant increase in Bitcoin (BTC) after the FOMC announcement shows its correlation with global financial market sentiment. Large short liquidation events also trigger price increases. Investors need to pay close attention to macroeconomic developments and central bank monetary policy to predict Bitcoin's next movements.
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How to Buy Bitcoin (BTC) on Bittime
You can buy and sell Bitcoin (BTC) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Bitcoin (BTC) is available on Bittime with the market pair BTC/IDR . To be able to buy BTC/IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Bitcoin (BTC) on Bittime.
Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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How Does Tether (USDT) Influence Global Economic Development? Read the explanation
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DISCLAIMER: This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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