Breaking $ 1 billion Bitcoin Futures Liquidation Sinks Markets record

If you thought the market’s bloodshed was over (at least in this cycle), we have some bad news for you.

The crypto setback continued overnight and Tuesday morning. Bitcoin fell 4.5% in the last 24 hours, according to Nomics, accumulating its second consecutive day of losses.

From the $ 61,500 highs hit on Sunday, Bitcoin traded at as low as $ 53,000 in the past 24 hours, representing a drop of more than 10%. For futures markets, the image was even darker.

According to a tweet from Glassnode co-founders Jan & Yann, there were $ 500 million settlements on Bitcoin long positions – bets that the price would rise – in an hour. That was the maximum that has ever been settled, according to Glassnode. The founders attributed the massive losses to the “excess of greed in the system”.

But others pointed out that the losses were even greater than that. Foreign exchange data company Bybt said the losses were more than $ 1 billion.

These considerable losses had an impact on market sentiment, according to the Fear and Greed Index. During the last bullish run, sentiment was consistent in the 1990s, suggesting that greed was driving up the price. This month, however, sentiment fell to the 1970s, suggesting that February’s exuberance has cooled.

Looking more closely at other market measurements in Market milk, sentiment retreated to neutral territory, suggesting that investors are sitting in this round of turmoil waiting to see if that drop is part of Bitcoin’s broader pattern of swings and setbacks or if something bigger is going on.

Taking a look at what’s happening on Wall Street, crypto investors will have reason to be excited.

The Dow Jones rose more than 100 points and the S&P 500 Index also advanced to new highs, thanks to the completion of the $ 1.9 trillion stimulus account that is designed to stimulate consumer spending and stimulate economic growth.

This has led a large number of economists to raise their expectations for the American economy as a whole.

Goldman Sachs projected that the fiscal bailout package would give the economy even greater momentum in 2021, estimating that gross domestic product would increase by 6% in the first quarter.

But with a series of good news comes a petty feeling that not everything can be right. Markets will be watching for comments from Fed Chairman Jerome Powell – who is due to issue a statement this week – for clues as to whether the central bank is increasingly concerned about bond market movements and an economy that may overheat .