Yesterday, Powell’s statements on interest rate hikes lost the risk appetite of investors.
US stock markets, which closed the day with losses of 1-2% after Powell spoke, continue to bleed today.
Bitcoin, which increased its correlation with the US stock markets, took its share from this sales wave and fell below $ 40,000 again.
Exchanges with Sellers
As of our news hour, the losses in the Dow Jones and S&P 500 are over 1%, while we see an increase of close to 8% in the VIX (fear) index.
Altcoins Stand Strong
While losses increased in the shadow of Powell’s statements on the last trading day of the week, we observe that the withdrawal in Bitcoin did not seriously affect altcoins and horizontal movements were observed on that side.
There is also a sale on the commodity side
We are watching a selling day not only in the indices but also on the commodity side.
Dollar Strengthens
The dollar, on the other hand, continues to gather its strength. After Powell’s announcement of a 50 basis point increase in interest rates in May, the dollar index rose to 101 levels today. This is the highest level since March 2020.
Short Positions Increase in Bitcoin
When we look at the futures funding rate specific to Bitcoin, we see that short positions begin to increase below the $40,000 level. After accumulating short positions for under $40,000, we will be watching if there will be a bounce (upward movement) to squeeze them.
The latest situation in Bitcoin futures funding rate is as follows:
