Crypto Liquidations Rise as Downtrend Takes Control of Market

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Bitcoin (BTC) fell 2.5% and crypto liquidations reached nearly $140 million in the past 24 hours. But why are traders still greedy?

The bears topped the crypto market as Bitcoin fell nearly 2.5% to $28,600. While the price of Bitcoin and major altcoins is falling, market sentiment has another story to tell.

Greedy traders despite liquidations

At the time of writing, the Crypto Fear and Greed Index stands at 63 points, indicating a sense of greed in the market. Alternative.me measures the index by analyzing emotions and sentiments in the market across multiple sources.

Source: Alternative.me

But on the other hand, the market’s bearish move has liquidated $136.85 million worth of trades in the past 24 hours. According to Coinglass, 32,738 traders faced liquidation, while the OKX exchange liquidated a single trade worth $5.62 million.

Of the total liquidations, 78.3% were long positions worth approximately $107.17 million.

Source: CoinglassQuantitative easing due to bank collapses

The US banking crisis has consumed the country’s 14th largest bank First Republic Bank. According to Reuters, JPMorgan Chase & Co. acquired assets and certain liabilities from First Republic Bank.

Today, all 84 branches of the bank will reopen as branches of JPMorgan.

Crypto influencer Hitesh Malviya believes there is a strong possibility of quantitative easing due to the US banking crisis. He told BeInCrypto:

The First Republic Bank collapsed recently, deepening the US banking crisis. There is a strong possibility of quantitative easing through additional fiat circulation. This incentivizes people to stay in the market for a long time, as the fresh money in circulation can be a short-term bullish case for Bitcoin.

After the collapse of big banks like Silicon Valley Bank, the Federal Reserve (Fed) injected $300 million to save the banking system. In addition, the Fed is widely expected to suspend interest rate hikes starting in July.

Robert Reich, professor of public policy, believes: “The most sensible thing would be for the Fed to suspend rate hikes long enough to let the financial system calm down. In addition, inflation is falling, albeit slowly. So there is no reason to risk more financial turmoil.

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For the latest Bitcoin (BTC) analysis from BeInCryptos, click here.

Disclaimer

In accordance with the guidelines of the Trust Project, BeInCrypto is committed to providing impartial and transparent reports. This news article aims to provide accurate and timely information. However, readers are urged to independently fact-check and seek professional advice before making any decisions based on this content.

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