Bitcoin Friday, rebounded on the level of support of $ 111,800, increased by 2.6% to $ 114,800 after the president of the Federal Reserve, Jerome Powell, referred to potential rate reductions during a speech to Jackson Hole.
The rapid movement, preceded by a sale leading to the speech, led to the liquidation of more than $ 375 million in cryptographic derivative posts, according to Coinglass. The majority of these losses are assigned to traders occupying short positions.
Ether (Eth) The posts were the hardest affected, with $ 150 million liquidated in the last four hours, the price going from $ 4,200 to $ 4,650, marking a gain of 10%.
Bitcoin’s level of support was essential because it was a record set in May. The rebound indicates a bullish reversal after a downward trend of one week of $ 124,500.
Despite the fears that Powell’s speech has a bellicist tone, he declared that “the risks down to employment increase” and “if these risks materialize, they can do so quickly in the form of highly higher layoffs and increasing unemployment”.
The comments suggest that rate reductions could be on the table next month, which would directly benefit risk assets such as bitcoin and ether.
The market remains volatile after the speech, BTC retreated slightly from $ 115,700 to $ 114,800. While the liquidations have withdrawn positions derived from the market, an open interest has reached its highest point in four days, which suggests that the rebound is also supported by the lever effect, according to Coinyze.
The Altcoin market is lagging behind Ether except Lido (LDO) and Ethena which continue to both rise up after the dry has clarified the rules around the pace earlier this month.
