Crypto Market Volatility
The crypto market has shown sharp volatility but staged a rebound. Bitcoin climbed 2.5% to over $70,000 after dipping to $68,000, while Ethereum surged 4% to $2,100. The broader market cap rose modestly, recovering from recent lows amid thin liquidity.
This fluctuation triggered around $300 million in liquidations, with shorts bearing the brunt—over $217 million wiped out—as bulls pushed back against sellers. Long positions lost about $80 million, highlighting the risks of leveraged trading in this choppy environment.
Key news added fuel to the fire. President Trump's nomination of Kevin Warsh as Fed chair sparked fears of a shrinking balance sheet, curbing risk appetite and slamming Bitcoin below $70K earlier this week. A stalled Senate bill on crypto regulation, amid bank-crypto clashes, and a probe into Trump's World Liberty Financial venture bred uncertainty. Geopolitical tensions and tariff threats further eroded confidence, erasing post-election gains and signaling that pro-crypto policies haven't shielded the market from macro pressures.
Stay tuned for tomorrow’s pulse!
#RiskAssetsMarketShock #WarshFedPolicyOutlook
