#Liquidations 📉 Crypto market “hurts”: $120 million liquidations in an hour after US report
Bitcoin has just shown how brutal the reaction to macroeconomic news can be. After the publication of positive data on the US labor market, the price of BTC sharply pushed back from the resistance at $75,000 and flew down.
What happened?
• Sharp drop:
$BTC lost almost $2,000 in a matter of minutes, falling to $73,200.
• “Helicopter” liquidations: In just one hour, positions worth more than $120 million were forcibly closed. Most of them are longs.
• Scale per day: The total amount of liquidations reached $350 million, and almost 140,000 traders were “under the hammer”. The largest single order was liquidated on Binance — almost $10 million.
Why does the market fall on good news?
The US Department of Labor data turned out to be better than expected: the number of initial claims for unemployment benefits fell to 207,000 (215,000 were forecast).
The market logic is simple: a strong labor market gives the Fed room to keep interest rates high. This strengthens the dollar and puts pressure on risky assets such as cryptocurrency.
What to watch out for?
Experts warn: although the labor market is currently stable, the war with Iran and high energy prices could force companies to start cutting jobs in a few months to protect profits.