Bitcoin market volatility has persisted as the U.S. dollar continues to swing back and forth as the market attempts to determine the odds of a fiscal stimulus package. The leading cryptocurrency recently plunged $150 in a manner of minutes as the U.S. dollar rapidly jumped higher in an odd bout of price action. The futures market has felt this volatility, with derivatives tracker reporting millions of dollars worth of liquidations.
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Bitcoin Sees Strong Market Volatility
Bitcoin has exhibited strong volatility over recent hours as the U.S. dollar has swung back and forth. The cryptocurrency plunged from its daily highs near $11,620 to $11,460 in the span of thirty minutes just an hour or two ago.
The U.S. dollar is bouncing back and forth as the market tries to price in the chances of another fiscal stimulus package passing. President Trump has been tweeting about the subject matter, calling out House Speaker Nancy Pelosi for “holding up” the package. Both sides of the aisle are trying to reach an agreement as to what should be in the bill, along with how much it should cost the American taxpayer.
Chart of BTC's price action over the past few hours from TradingView.com (BTCUSD)
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Derivatives Market Mixed
This volatility resulted in millions of dollars worth of Bitcoin futures liquidations on BitMEX alone over recent hours. As BitMEX is just a fraction of the entire BTC futures market, it is likely that the liquidations in the past few days amount to dozens of millions.
This segment of the crypto market isn’t too sure what comes next for Bitcoin. The funding rates of leading Bitcoin futures markets are currently at neutral or slightly negative, suggesting indecision.
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Photo by bantersnaps on Unsplash Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Price Dives $150 in Minutes as Volatility Persists