Bitcoin gradually moved to just under $28,000 on Thursday as traders digested the quarter-point interest rate raise Wednesday by U.S. Federal Open Market Committee (FOMC), in line with expectations.
The decision reinforced the Federal Reserve's concerns that inflation remains problematic, and that it remains "strongly committed to returning inflation to our 2% objective.”
Bitcoin slid under $27,000 immediately after FOMC as traders took profits on a 20% gain over a seven-day rolling period. However, traders of bitcoin-tracked futures took on over $150 million in losses amid the volatility, with billions in open interest – or the number of unsettled contracts – effectively getting washed out.
Over 75% of those losses came from longs, or bets on price rises, as traders likely positioned for a move higher after the FOMC meeting but were caught offside.
(By Shaurya Malwa)
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