New data from market intelligence platform Coinglass reveals that hundreds of millions of dollars in crypto short positions were liquidated after Fed Chair Jerome Powell signals possible interest rate cuts in September.
According to Coinglass, during the last 12 hours, $248 million worth of Ethereum (ETH) and $87.65 million worth of Bitcoin (BTC) options have been liquidated.
The liquidations occurred after Powell delivered a speech indicating that the Fed may soon ease monetary policy. As stated by Powell at a recent economic symposium,
“Putting the pieces together, what are the implications for monetary policy? In the near term, risks to inflation are tilted to the upside, and risks to employment to the downside – a challenging situation. When our goals are in tension like this, our framework calls for us to balance both sides of our dual mandate.
Our policy rate is now 100 basis points closer to neutral than it was a year ago, and the stability of the unemployment rate and other labor market measures allows us to proceed carefully as we consider changes to our policy stance. Nonetheless, with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.
Monetary policy is not on a preset course. FOMC (Federal Open Market Committee) members will make these decisions, based solely on their assessment of the data and its implications for the economic outlook and the balance of risks. We will never deviate from that approach.”
According to financial services titan CME Group, there is nearly a 90% chance that the Federal Reserve will cut interest rates by the end of the month.
Ethereum is trading for $4,644 at time of writing, a 9% gain on the day while BTC is valued at $116,813.
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Featured Image: Shutterstock/EgudinKa/Natalia Siiatovskaia
