Long Liquidations Hit $320M as Bitcoin & Ethereum Stumble

Long Liquidations Hit $320M as Bitcoin, Ethereum Stumble

Today, Bitcoin experienced a downturn, dropping to $42,200, a nearly 4% decrease from its previous high of $43,800. Ether also saw a decline of almost 5% to $2,230, along with a slump in most altcoins. This market dip led to significant long position liquidations in the crypto market, with more than $94 million in Bitcoin positions liquidated, predominantly longs. The total liquidations in the overall crypto market amounted to $320 million.

This decline has helped normalize the funding rates for major tokens like BTC, bringing them below 0.1%, and indicating a reduction in overleveraged bullish positions. Last week, funding rates for BTC and other major cryptocurrencies reached 0.15%, indicating excessive bullish leverage. The recent market-wide price drop in the early Asian session has brought funding rates to healthier levels, suggesting that overleveraged traders have exited the market.

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Goldman Sachs Predicts Fed’s First Rate Cut in Q3 2024

Goldman Sachs has revised its prediction for the Federal Reserve’s first interest rate cut, now expecting it in Q3 2024, earlier than its initial forecast of Q4. This update comes amid a recent surge in Bitcoin and the wider crypto market, driven by factors like potential U.S. spot ETF approvals, Bitcoin’s upcoming halving event, and a decline in the 10-year U.S. Treasury yield. 

The Fed’s current rate is between 5.25% and 5.5%, but market traders forecast a decrease to around 4% by the end of next year. Lower interest rates generally encourage risk-taking in markets, including cryptocurrencies, contrasting with the tightening seen in 2022.

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Tether Freezes 161 Wallets; Eleven Contain USDT

Tether has initiated a freeze on USDT tokens in wallets belonging to individuals on the U.S. OFAC list. This action, part of Tether’s effort to prevent misuse of its tokens, affected 161 Ethereum wallets, although only 11 of these held any USDT. Of these, one wallet, reportedly linked to a recent hack, holds about 97% of the total 3.5 million USDT frozen. This wallet was active with hundreds of transactions just before the freeze. The other wallets hold significantly smaller amounts, with one containing as little as 16 cents in USDT. Two wallets routed over 400,000 USDT through other addresses, which were not frozen. 

Tether’s actions align with its commitment to enhanced security measures, though the company has not yet commented further on this development.

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Pudgy Penguins Announce “Pudgy World” NFT Game Launch 

Pudgy Penguins, a popular Ethereum NFT collection, is set to expand its universe with the launch of a 3D browser game, Pudgy World, in 2024. Revealed at Art Basel in Miami, this metaverse experience allows NFT holders and plush toy owners to adopt a virtual version of their collectibles. 

Pudgy World is free-to-play, with optional purchases for character customization. The game, developed post-leadership change and a $9 million funding round, will feature a story-driven adventure involving characters Pudgy and Peaches. Utilizing Matter Labs’ Ethereum layer-2 protocol zkSync, it promises to offer new gaming experiences with enhanced privacy and blockchain integration.

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Other breaking news

• Bitcoin Inscriptions Listed in US National Vulnerability Database
• Bonk Surpasses Pepe with 370% Monthly Gain on Solana
• $500M Crypto Fund Targets Animoca Brands, Chainalysis: Report
• Crypto Fund Inflows Reach $43M, Totalling $1.8B Over 11 Weeks
• Ark Invest Sells Over $100M in Coinbase Stock Last Week

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Wrapping up

Wrapping up today’s edition: Bitcoin and altcoins are pausing after their recent intense rally, with long liquidations reaching $320M. On the macroeconomic front, the outlook appears positive; Goldman Sachs now forecasts the Fed’s first rate cut in Q3 2024, sooner than its initial Q4 forecast. In regulatory news, Tether has frozen wallets linked to individuals on the U.S. OFAC list. In the NFT space, the market is showing signs of recovery, with Pudgy Penguins announcing the launch of their “Pudgy World” NFT game. Stay tuned for more updates!