September 2023

Bitcoin Plunges 3.5%, $180M in Liquidations in 4 Hours

• The article discusses the global shift away from the US dollar, resulting in offloading of US treasuries.
• Bitcoin’s perpetual funding rate has turned negative, leading to $180 million in liquidations over 4 hours.
• Inflation woes continue for UK and the Bank of England faces tough decisions as staked Ethereum deposits exceed ETH withdrawals in latest 24-hour period.

Global Shift Away From U.S Dollar

The U.S dollar is gradually losing its status as the world’s reserve currency with more countries turning to other alternatives such as Bitcoin and gold. This shift has resulted in offloading of US treasuries by investors, who are seeking safer investments outside of traditional stock markets.

Bitcoin Price Drop

Bitcoin has experienced a sharp 3.5% drop in price over the past 4 hours due to altcoins bleeding and resulting liquidations that exceeded $180 million. The perpetual funding rate on Binance also turned negative during this time, while open interest for BTCUSDT pair on Binance dropped by 5%.

UK Inflation Woes

The UK economy is facing higher inflation levels than expected due to rising commodity prices and a weaker pound sterling against other major currencies. As a result, the Bank of England (BOE) is facing tough decisions when it comes to setting monetary policy in order to combat these pressures on consumer spending power and ensure economic stability amid Brexit negotiations.

Staked Ethereum Deposits Exceed Withdrawals

In the latest 24-hour period, staked Ethereum deposits have exceeded ETH withdrawals indicating that more users are opting for staking rewards instead of trading activities within decentralized exchanges (DEXs). This could be seen as an indication that investor confidence is growing within the Ethereum ecosystem due to increasing liquidity options available within DEXs such as Uniswap and Sushiswap among others.

Bitcoin Back Over $30K

Despite recent market volatility, Bitcoin is back above $30K — attributed mainly to spot driven rally rather than large liquidations taking place on exchanges like Binance or Coinbase Pro. This indicates that investors remain confident about long term prospects for Bitcoin despite current market conditions and overall sentiment remains bullish with little sign of bearishness anytime soon.