Bitcoin maintains gains despite bloodbath across crypto, equities after Minneapolis Fed comments
As of press time, the flagship crypto was trading between $67,500 — giving up more than half its gains after the dollar index recovered from its decline earlier in the day.
Total liquidations stood at $199.2 million over the past 24 hours, with longs accounting for more than half at $109.4 million. Meanwhile, Bitcoin-related liquidations amounted to $67.3 million, with shorts making up $41.8 million.
Most altcoins failed to mirror Bitcoin’s recovery, with Ethereum (ETH) down roughly 1% on the day at $3,283, while Solana was down 2% and trading at $181.7 as of press time.
BNB showed relative strength and was trading at $587, up 5% over the past 24 hours.
Safe haven?
The decline in stock indices, with the S&P 500 and Nasdaq each retreating by nearly 1% from their session highs, was notably influenced by Minneapolis Federal Reserve Bank President Neel Kashkari’s remarks during a LinkedIn virtual event.
He expressed skepticism regarding the Fed’s pace of interest rate cuts amid persistent inflation, a viewpoint that deviated from the more optimistic tone previously set by Fed Chairman Jerome Powell regarding potential rate reductions within the year.
This divergence in perspectives within the Federal Reserve highlighted the ongoing debate over the best approach to tackling inflation while fostering economic growth, triggering a swift reaction in equity markets.
Meanwhile, Bitcoin’s climb served as a reminder of its perceived value as a digital safe haven among investors, especially during times of traditional market instability and monetary policy uncertainty.
