$488M IN CRYPTO POSITIONS WIPED OUT IN 24 HOURS

🚨 $487.68 million in crypto positions liquidated in 24 hours. 97,691 traders wiped.

Bitcoin was trading near $80,000 on Friday. Then Fed Chair Kevin Warsh spoke at Jackson Hole and reopened the door to higher interest rates.

Bitcoin fell as low as $76,909 before recovering to $77,712, down about 4% on the day.

📉 CryptoSlate reports that traders lifted the probability of a September rate increase to about 60%, up from roughly 35% before the speech. Short-term Treasury yields rose. The dollar strengthened. The two-year yield hit a one-month high.

Warsh's argument: inflation is still too high. The Fed's preferred PCE price index is running at 3.7% over the past year and a 4.1% annualized pace over six months, both well above the 2% target. He also said he would be hard pressed to call current financial conditions restrictive, pointing to narrow corporate bond spreads and easy bank lending standards.

Crypto had entered Friday loaded with leverage after Bitcoin's rally above $80,000. CoinGlass recorded $487.68 million of liquidations, with more than $200 million closed within one hour of the remarks.

Longs absorbed more than $360 million. Bitcoin positions accounted for about $141 million. The largest single liquidation was an $11.66 million ETH-USDT position on Binance.

‼️ It was not just crypto. CryptoSlate reports gold and silver shed more than $700 billion in market value after the speech.

Warsh committed to nothing on September, leaving incoming data to decide.

Were those traders overleveraged, or did the Fed just move the goalposts?

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