Bitcoin (BTC) experienced a sharp price fluctuation at the beginning of the week, resulting in massive liquidations across the derivatives market. Between the weekend and Monday, repeated ups and downs created an unusual situation where traders using leverage suffered losses in both directions.
According to blockchain data analysis firm Glassnode, approximately $28.6 million (about 39.7 billion won) in long positions and $25.2 million (about 35 billion won) in short positions were liquidated within 24 hours. This "two-way liquidation" where positions are wiped out in both buy and sell directions clearly reveals the market's psychological uncertainty. The rapid short-term volatility has amplified confusion among traders regarding market direction.
Currently, Bitcoin is adjusting prices within a downward trend channel. However, on-chain data suggests low network utilization and trading activity, indicating a lack of short-term upward momentum. Analysts believe downward pressure could continue without substantial demand recovery.
Additionally, the US Core Consumer Price Index (CPI) was recently calculated at 2.7%, showing inflation is slowing down more gradually than expected. This is interpreted as a signal of firmly entrenched inflation, lowering expectations for Federal Reserve interest rate cuts. This is negatively impacting risk assets, including Bitcoin.
Market experts believe that in the short term, global macroeconomic conditions, especially the Federal Reserve's monetary policy moves, are likely to lead the cryptocurrency market's direction. Bitcoin's price is expected to continue fluctuating within a limited range, with a wait-and-see attitude focused on trading volume and on-chain signals.
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