Originally published on: November 08, 2024
The price of Bitcoin surged to nearly $77,000, setting a new all-time high amidst concerns of a potential ‘long squeeze’. The market showed signs of high leverage liquidity as the spot price continued to climb.
Data from Cointelegraph Markets Pro and TradingView indicated that Bitcoin’s price gains remained steady after the daily close, reaching new highs just below $77,000 on Bitstamp. This surge in volatility coincided with the US Federal Reserve’s decision to lower interest rates by 0.25%.
Federal Reserve chair Jerome Powell highlighted the balance of risk factors impacting inflation and employment in the economy, stating that economic activity had continued to expand at a solid pace. The Fed’s recent pivot on interest rates raised concerns among traders, with some predicting a potential ‘long squeeze’ in the market.
Despite these uncertainties, Bitcoin remained resilient, setting a new record high and achieving its highest daily close ever. The cryptocurrency was up 8% month-to-date, with Q4 gains reaching 19.6%, according to CoinGlass.
Liquidity on exchange order books was seen building heavily on both sides of the spot price, indicating a volatile market environment. Trading resource The Kobeissi Letter advised caution, suggesting that not trading would be the best strategy in the current climate.
As traders anticipated a potential correction in the market, discussions around a ‘long squeeze’ and the impact of inflation trends on interest rates continued to fuel market speculation. While Bitcoin’s price trajectory remained uncertain, investors were reminded to conduct thorough research and analysis before making any investment decisions.
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