Connect with us

Hi, what are you looking for?

Top Stories

Bitcoin rises above $36K as 24-hour crypto liquidations pass $500M


Bitcoin (BTC) edged higher after Wall Street opened on Feb. 24 with Russia’s Ukraine invasion and its aftermath still top on markets’ agenda. 
29792625 a9ff 48fe aaa2 21bad1ac7f9d
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Risk sentiment set to be “dominant driver” in crypto

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD nearing $36,400 on Bitstamp two hours after the opening bell, up to $2,000 from its recent lows.

Skittish markets faced the music from Russia’s overnight incursion into Ukraine, a move that continued and ricocheted across global trading.

Russia’s stock market unsurprisingly faced a different level of trauma, with MOEX losing 50% and at one point halting trading altogether.

Bitcoin, suffering earlier in the day, nonetheless staged a respectable comeback.

“At the start of the week, escalating tensions between Russia and Ukraine had hit crypto markets hard. Our crypto indices were already showing sizeable losses across all sectors,” Sahil Sakhrani, a market analyst at crypto research firm Macro Hive, told Cointelegraph.

Sakhrani warned that the announcement of further sanctions against the Russian economy may exacerbate the situation anew and that Bitcoin’s correlation to traditional equities markets should not be overlooked.

“Now the news has worsened with an apparent Russian invasion of Ukraine followed by the EU, the U.K., and the U.S. proposing further sanctions against Russia,” he continued.

Advertisement. Scroll to continue reading.

“Risk aversion is likely to be the dominant theme for markets. With the correlation between Bitcoin and NASDAQ picking up again, broader risk sentiment will likely be the dominant driver of crypto markets.”

A second bone of contention came in the form of the United States Federal Reserve potentially slackening key rate rises due to the conflict.

For popular trader and analyst Pentoshi, however, such a theory seemed out of place.

“If you have an impending recession w rates at 0 and inject more capital you get something worse. Stagflation,” part of a recent Twitter update argued.

On the topic, economist Mohamed El-Erian said that such risks “come at a time when Fed policy flexibility is limited and liquidity can be patchy.”

Liquidations pass $500 million

The day’s events, meanwhile, sent derivatives funding rates well into negative territory as traders weighed the likelihood of more downside.

Related: Last Bitcoin support levels above $20K come into play as BTC price faces ‘time of uncertainty’

Data from analytics source Coinglass confirmed the action, along with cross-crypto liquidations reaching $530 million in 24 hours.

087d2d8e 51af 4450 8742 be8e463c79b4
Bitcoin futures funding rates chart. Source: Coinglass

“Heavy” selling by shorters was thus in evidence, research firm Numbrs added about the data.