Futures Market Update: After Bitcoin breaks through $62K, more short positions face difficulties

A 50 basis point cut by the Fed, and the first bitcoin buy by a presidential candidate, kept digital assets in the green during the East Asia trading day, even though some market watchers are skeptical if the rally has any sort of legs.

Fed members expect median benchmark rates to come down to 4.4% by year-end, as reported, reflecting some 50 basis points (bps) more cuts in the next two Federal Open Market Committee (FOMC) meetings, according to the Fed's quarterly economic projection. Bitcoin is up 2.4% in the last 24 hours, and the broader crypto market moved higher. Solana’s SOL rose 6% to lead gains among majors, with BNB Chain’s BNB, XRP and Cardano’s ADA rising as much as 4.5%. Memecoins dogecoin (DOGE) and shiba inu (SHIB) rose 4%.

Maelstrom’s Arthur Hayes argued that rate cuts as a whole aren’t necessary, and a 50 basis point rate cut would trigger a brief market rally but ultimately reveal deeper issues in the global financial system, leading to more depressed prices. “At a high level, I think that they should not be raising rates. I believe that the U.S. economy is quite strong. If you've seen the GDP prints over the last eight or nine quarters, it's been consistent growth,” he said during the interview. “Inflation is going to accelerate into the fourth quarter if they decide to continue cutting rates.”

The U.S. government's heavy spending is driving rapid economic growth, which benefits Kamala Harris's election chances, but cutting rates amid high inflation is seen as a mistake, he argued. “I think that the response is going to be if the markets start to falter, they're just going to do more of it and they’re going to make the problem even worse,” he continued.

In a note, Presto Research wrote that the market remains divided on the implications of the Fed's 50 bps cut, with mixed reactions across asset classes, as concerns over growth and potential recession weigh on investor sentiment. “Judging by last night’s market confusion, growth concerns clearly exist, and the market needs relief from them to rally. We are now firmly in ‘good news is good news’ territory,” Presto wrote.

Source: CoinDesk

 

More short positions got in trouble after BTC crossed $62K.

Total BTC Open Interest: $33.04B (+2.54%)

BTC Volume (24H): $88.35B (+20.80%)

BTC Liquidations (24H): $17.79M (Long)/$57.46M (Short)

Long/Short Ratio: 50.15%/49.85%

Funding Rate: 0.0052%

 

Total ETH Open Interest: $11.14B (+4.60%)

ETH Volume (24H): $29.12B (+30.78%)

ETH Liquidations (24H): $15.80M (Long)/$19.90M (Short)

Long/Short Ratio: 49.72%/50.28%

Funding Rate: 0.0087%

KDA: $8.29M (+395.83%)

ZCX: $934.74K (+136.46%)

ZETA: $53.56M (+98.43%)