Before the Federal Reserve announced its interest rate decision, market risk aversion increased, and Bitcoin fell below $77,000. In the past 24 hours, the scale of liquidations in the crypto market expanded, indicating that short-term funds significantly reduced their positions ahead of macroeconomic events.
24-hour settlement rises to $338 million
Data shows that in the past 24 hours, approximately 79,000 traders were liquidated, with a total liquidation amount of 337.75 million US dollars. Bitcoin fell by about 1.28% during the day, and the market became more cautious before the interest rate decision was announced.
In addition to the Federal Reserve meetings, procedural votes in the U.S. Senate regarding digital asset market-related legislation also dampened risk appetite. Reports mention that banking groups have opposed the "circuit breaker" provisions for stablecoins in the legislation, leading to a cooling of market expectations for the advancement of the bill.
The market is betting on a 25-basis-point interest rate hike this week.
According to the CME FedWatch tool, traders are currently betting that the Federal Reserve will raise interest rates by 25 basis points this week with a probability of about 93%. Inflation data for August remains high, which also reinforces this expectation.
Reported data shows that in August, the CPI in the United States was 3.4% year-on-year, and the PPI was 5.4% year-on-year. Against the backdrop of increasing expectations for interest rate hikes, U.S. Treasury yields remained high, putting pressure on risk assets that do not generate fixed income.
Meanwhile, the price of Brent crude oil rose above $106 per barrel. Tensions in the Middle East have pushed up oil prices and also increased market concerns about recurring inflation, further suppressing the performance of risk assets, including Bitcoin.
Spot Bitcoin ETF still recorded net inflows
Despite the weakening prices, US spot Bitcoin ETF still recorded a net inflow of $159.9 million on September 14, indicating that some institutional funds are continuing to be allocated into it.
Among them, BlackRock IBIT had a net inflow of $134.3 million, Fidelity FBTC had a net inflow of $53.3 million, and Morgan Stanley MSBT had a net inflow of $9.7 million; however, ARKB experienced a net outflow of $42 million on that day, which weakened the overall inflow volume.
From a price range perspective, Bitcoin is testing the support area between $76,000 and $76,500. If this range is lost, the market's next focus will shift to around $73,000.
