Bitcoin has recovered from a recent low of $52,500, surging past the $57,000 mark, which triggered a notable wave of short liquidations.
In the past 24 hours, approximately $45 million in Bitcoin positions were liquidated, with shorts accounting for $36 million of that figure. The broader cryptocurrency market faced over $126 million in liquidations, primarily driven by short positions, as reported by Coinglass.
Analysts are closely monitoring several upcoming U.S. political and economic events that could influence Bitcoin’s price trajectory. Key factors include the anticipated performance of Donald Trump in a debate against Kamala Harris and the Consumer Price Index (CPI) report scheduled for Wednesday.
These events may provide insights into potential interest rate cuts by the Federal Reserve at next week’s Federal Open Market Committee (FOMC) meeting.
Valentin Fournier, an analyst at BRN, noted that if Bitcoin surpasses the local high of $59,750 reached last Tuesday, it could signal the beginning of a bullish trend. However, he cautioned that market volatility remains high, and further declines are possible, particularly as the Fed’s interest rate decision approaches on September 18.
Recent trends indicate that Bitcoin’s price movements are increasingly correlated with the U.S. equities market. The S&P 500 experienced its sharpest weekly decline since March 2023, closing down 4.25%.
This downturn coincided with a 5.45% drop in Bitcoin prices last week. Analysts from Bitfinex observed that Bitcoin’s reduced sensitivity to equity movements may suggest seller exhaustion in the cryptocurrency market.
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