$BTC dropped to a seven-week low near 75,600 overnight while the midterm results were coming in, and it's since traded back above 78,000.
About $443M got liquidated on the way down and open interest fell while it happened, so I read it as leveraged longs being forced out... someone deliberately getting short adds open interest, and this flush took it away.
Fed funds futures took hikes out of every 2027 meeting in the same overnight window. That's usually a tailwind for Bitcoin, and it didn't help at all... I think the selling was about crypto's own legislative path, since the CLARITY Act lapses on 3 January 2027 when the new Congress convenes and would have to be reintroduced.
With the forced sellers mostly out, I'm watching whether the bounce holds once the rates tailwind gets a chance to show up in the price.
#Bitcoin #Crypto #Fed #Macro
About $443M got liquidated on the way down and open interest fell while it happened, so I read it as leveraged longs being forced out... someone deliberately getting short adds open interest, and this flush took it away.
Fed funds futures took hikes out of every 2027 meeting in the same overnight window. That's usually a tailwind for Bitcoin, and it didn't help at all... I think the selling was about crypto's own legislative path, since the CLARITY Act lapses on 3 January 2027 when the new Congress convenes and would have to be reintroduced.
With the forced sellers mostly out, I'm watching whether the bounce holds once the rates tailwind gets a chance to show up in the price.
#Bitcoin #Crypto #Fed #Macro