A Sunday night trend<\/p>\n
According to a markets-based newsletter called the Kobeissi Letter with nearly 1 million followers on X, over $1 billion of long positions on Bitcoin, the world’s largest cryptocurrency, were recently liquidated after Bitcoin’s<\/a> price began to fall. The Kobeissi Letter said it has been tracking this trend for over a year and large Sunday-night sales have become common.<\/p>\n Image source: Getty Images.<\/p>\n “As we frequently see during the Sunday night session, low liquidity has led to a large wash-out,” the Kobeissi Letter wrote on the platform X. “The dip is frequently bought into the US market open.”<\/p>\n It’s also possible that investors are reassessing their positions after the Federal Reserve lowered interest rates last week for the first time this year. Crypto typically performs well in a falling-rate environment, but Fed Chair Jerome Powell called the decision a “risk management cut”<\/a>, and Fed members indicated they expect fewer rate cuts next year than the market has been expecting. Some investors took this as a hawkish signal.<\/p>\n Nothing atypical for crypto<\/p>\n If you invest in crypto<\/a>, than this kind of volatility is nothing new. Forced liquidations and flash crashes happen every now and again, and the Kobeissi Letter even said the Sunday-night sell-off was common. While I am not overly concerned about this sudden drop, I still have no interest in Dogecoin<\/a>, due to its lack of real-world utility.<\/p>\n","protected":false},"excerpt":{"rendered":"The broader crypto market struggled today. Since yesterday afternoon, the price of the meme token Dogecoin (DOGE -8.73%)…\n","protected":false},"author":2,"featured_media":174353,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[28,112],"class_list":["post-174352","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-markets"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/174352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=174352"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/174352\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/174353"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=174352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=174352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=174352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/p>\n