Bitcoin (BTC) traded just above $43,000 in the European morning hours on Thursday, recouping some losses after a leverage flush sent it down as much as 7% on Wednesday as markets reacted to analyst reports. Matrixport's inconsistent report served as a catalyst for the unwinding of overleveraged positions, leading to a cascade liquidation and worsening the decline. Nearly $560 million in leveraged long derivatives trading positions – bets on higher prices using borrowed money – were wiped out as of Wednesday, the highest amount in at least three months, data from CoinGlass shows. CryptoQuant also attributed the decline to exceptionally high funding rates in the Bitcoin futures market, with selling pressure from Bitcoin miners and high profit rates from short-term holders as contributing factors. Major tokens Solana (SOL), Ether (ETH), and Cardano's ADA began to stabilize early Thursday after falling more than 10% in 24 hours. The CoinDesk Market Index (CMI), a broad-based index that tracks the market, fell 6% over the same period, the sharpest decline in recent weeks.
Minutes from the Federal Reserve's (Fed) December meeting released on Wednesday showed that interest rate cuts in 2024 are likely. The long-awaited liquidity easing has been widely touted as a key positive upside for Bitcoin (BTC), alongside the impending launch of spot ETFs and the Bitcoin blockchain's quadrennial mining reward halving. There's a catch. Previous data from MacroMicro shows that the early stages of the Fed's supposedly stimulative rate-cutting cycle are often characterized by the economy teetering on the brink of recession and a brief but notable recovery in the U.S. dollar, a global reserve currency dominated by the largest currency in the world is taking place and is the most liquid market for government bonds.
Goldman Sachs, the renowned Wall Street investment bank, is expected to play a key role in the Bitcoin ETFs that BlackRock and Grayscale plan to launch in the US, according to two people familiar with the situation. The company is in talks to become an authorized participant (`) for the exchange-traded funds, according to the people, who requested anonymity. This is one of the most important tasks in the multi-trillion dollar ETF industry. This involves the creation and redemption of ETF shares to ensure that the products trade in lockstep with their underlying assets. Goldman Sachs would take on this role along with other financial giants. Last week it was announced that JPMorgan Chase, Jane Street and Cantor Fitzgerald would take the ` job for some of the dozen or so companies seeking permission from the Securities and Exchange Commission to offer Bitcoin ETFs in the US
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