Bitcoin has seen a lot of volatility in recent weeks with April ending with the worst returns in history, and while the pattern looks like it will continue in May, Bulls have decided to take control of the Bitcoin price.
The crypto market has been trading in a limited range as investors await the US Federal Reserve’s decision on a new rate hike, which has become a monthly defining feature of market direction.
Today’s price action, however, has been rather upbeat, with Bitcoin breaking beyond $39,000 for only the second time in the last six weeks as bulls take advantage of the market’s uncertain trajectory and seize control.
The market may have pumped today, but the price action resulted in similar liquidation of both long and short orders, although long orders are liquidated 54.82 percent more than short orders, according to Coinglass data.
47,177 traders liquidated their short positions across the cryptosphere in the past 24 hours, bringing the total amount liquidated to around $136.58 million, which is low when compared to earlier turbulent days.
Investors in the global equities market, with which Bitcoin has been moving in lockstep, are expected to respond to the US economic policy announcement, which is due in a few hours.
While crypto’s recent price movement has been largely influenced by macroeconomic factors, any surprises in the Fed’s decision are expected to cause at least brief market volatility, as they did in the past six months as markets try to align with central bank policy.
The Fed is expected to raise interest rates for the first time in over 20 years, and the start of balance sheet runoff shows that the Fed is serious about fighting inflation, according to Wells Fargo analysts.