- BTC’s sharp slump to $66K triggered $250M in overall market liquidations
- Peter Schiff mocked the king coin amidst the drop, but sympathized with U.S. investors.
Bitcoin [BTC] fronted a wild bearish reaction during Asian trading hours on the 2nd of April. The king coin slumped $3K, from $69K to $66K, after US manufacturing activity unexpectedly improved in March.
At the time of writing, more than 95% interest rate traders were expecting the Fed rate to maintain its current range in May.
That means the odds of Fed rate cuts by summer might drop significantly, affecting risk-on assets like BTC.
Amidst the slump, Peter Schiff took a swipe at Bitcoin, stating,
“Bitcoin just tanked over $3K in about 10 minutes. That’s almost a 4.5% drop. It’s equivalent to a $100 drop in the price of gold in 10 minutes. Gold is actually up a couple of bucks.”
However, he sympathized with investors who could not act until the New York Stock Exchange trading session opened, saying,
“If this turns into something bigger, ETF investors are trapped until the NYSE opens tomorrow.”
Macro risks dampen bullish prospects on Bitcoin
The strong March US manufacturing data also tipped Bloomberg analysts to lower the odds of June Fed rate cuts to below 50%.
Inasmuch, Quinn Thompson, CIO of Lekker Capital’s on-chain derivatives platform, reacted to the development, describing it as an “unexpected macro risk.”
“I chalk up a good amount of today’s move to a big smack in the face on the macro front that dampened animal spirits across the board.”
The CIO expected a strong BTC move in the first two weeks of April, with a “regional peak” around the halving event. However, the macro risk forced him to re-adjust the timeline.
“I am definitely reassessing that timeline, given today’s move-in rates felt different.”
BTC’s wild slump to $66K saw the market record over $250M in liquidations in the past 12 hours. For BTC, the total rekt positions were $95M, with longs suffering $64M in liquidations over the same period.
Crypto research firm 10X Research noted that $68.3K was critical. However, a break below February-April trendline support could give bears more leverage.
