00:03 Josh
Bitcoin slipping below 110,000 in Thursday’s trade amid a broader sell off in crypto and stocks. Yahoo Finance’s Ines Ferre joins us now with more. Ines.
00:13 Ines Ferre
Josh, heavy liquidations have been weighing on the crypto market. More than 1.6 billion in long positions were wiped out earlier this week. That’s followed by another 500 million over the past 24 hours.
00:30 Ines Ferre
That’s forced selling consisting of leveraged trades. So liquidations have been really amplifying the pullback that we’ve seen, the rollover that we’ve seen with cryptocurrencies. Right now we’re looking at Bitcoin down more than 3%.
00:44 Ines Ferre
Eth down more than five, Ripple down more than five, but I just want to pull up that’s five-day chart, those liquidations I was talking about. and take a look, Eth down 11% over the last five days, Binance down more than 8%. So you are seeing Solana down 15% over the last five sessions. So altcoins taking it on the chin even more so than Bitcoin.
01:04 Ines Ferre
Uh, but remember that September tends to be a seasonally weak month for crypto. There is also another headwind that crypto bulls have been pointing to, and it has to do with liquidity. This is money that’s sloshing around.
01:16 Ines Ferre
So the Treasury General account, not to get too wonky here, basically the checking account of the government, has been getting filled up over the last several weeks. So through the issuance of T- bills and bonds, that soaks up liquidity and that fill up diverts cash from other assets like crypto. So that’s putting pressure on these crypto uh assets.
01:39 Ines Ferre
But uh that headwind though should be subsiding as the TGA is just about uh filled up. The next three months, the strategists say, tend to be bullish for Bitcoin.