- $9.7 billion worth of shorts are close to liquidation in Bitcoin.
- Crypto ETFs recorded their first net inflow on 29 Nov, ending a long pause.
- The US Fed’s chances of a rate cut are at 87% on Polymarket.
- Technical Analysis indicators are already in the oversold zone.
Bitcoin is Close to Liquidating $9.7 billion in Shorts
Bitcoin Exchange data suggests a major short squeeze could occur in the coming couple of weeks as Bitcoin inches higher. The price of BTC rose almost 11% in the last 10 days. If the trend continues (which is likely), it will send short sellers into a panic sell-off mode, triggering a massive short squeeze in Bitcoin.
Since Bitcoin accounts for nearly 60% of the crypto market cap, such a short squeeze could trigger a marketwide rally.
ETFs See Positive Flows After Long Break
U.S. Crypto ETFs see their first positive inflow in a long time. Bitcoin ETFs saw their first positive inflows this week, after significant outflows since November 14. Although inflows are minimal, the halt in outflows provides relief to the entire market.
Ethereum ETFs, on the other hand, showed decent inflows over the last 10 days, unlike Bitcoin ETFs. The reason for such high inflows appears to be the approval of staking Ethereum ETFs, which offer additional staking gains to ETF holders.
US Fed Could Provide a Rate Cut on 10 Dec
The US Federal Reserve could provide a 0.25% rate cut due to exceptional circumstances in the current markets, despite good job market data and fairly high inflation.
Prediction markets are expecting an 88% probability that the US Federal Reserve will cut interest rates further by 0.25%.
Also, in the last Jackson Hole Symposium, the US Federal Reserve Chairman Powell signaled that starting from December 2025, it would ease its hawkish stance and choose a more relaxed, dovish policy (which means it will cut interest rates in the future).
Disclaimer: Crypto markets are volatile in nature. All articles on A2Z Cryptocurrencies are informational and are not financial advice. Please consult your financial adviser before investing.
