Professional Bitcoin traders were unaffected by the recent 9.6% price correction and derivatives data reflect a healthy market.
The 9.6% intraday Bitcoin (BTC) price correction on Jan. 3 dropped the price to $40,940 and created turmoil and substantial losses for derivative traders. This is evident from the $137 million in leverage long futures liquidations, marking the highest in over four months.
Fortunately, for bulls, Bitcoin price rebounded somewhat quickly and currently trades above $44,000. This has raised the question of whether BTC price can reach $46,000 before the upcoming SEC decision on the spot Bitcoin exchange-traded fund (ETF) applications.
The surging U.S. government debt and expectations of interest rate cuts by the U.S. Federal Reserve (FED) provide a constructive scenario for risk-on markets, including cryptocurrencies. Minutes from the recent Federal Open Market Committee meeting, released on Jan. 4, strengthened expectations of 6 quarter-point cuts this year. Notably, U.S. government debt interest has exceeded $1 trillion per year, as reported by Bloomberg.
