<p>Traders going long and short on bitcoin, ether, and other cryptocurrencies were hit by over $786 million in liquidations on Thursday.</p> <p>The liquidations came as crypto prices <a href="https://www.theblock.co/post/179766/bitcoin-climbs-above-20000-coinbase-shares-soar-more-than-12-as-financial-markets-rally">shot</a> up in line with broader financial markets. Bitcoin hurtled past $20,000 for the first time since Oct. 6. Crypto stocks were also buoyed, as Coinbase shares climbed over 12%.</p> <p>Crypto traders suffered $686 million in short liquidations on Tuesday, <a href="https://www.theblock.co/data/crypto-markets/futures/long-liquidations" target="_blank" rel="noopener">according</a> to The Block's Data Dashboard. Markets hadn't seen short liquidations totaling over $200 million since Sept. 9, when $287 million in shorts were liquidated. </p> <p><iframe frameborder="0" height="420" src="https://embed.theblockcrypto.com/data/crypto-markets/futures/short-liquidations/embed" title="Short Liquidations" width="100%"></iframe></p> <p>Bitcoin accounted for $328 million of the $686 million in short liquidations yesterday — roughly 47% — <a href="https://www.theblockcrypto.com/data/crypto-markets/futures/btc-liquidations" target="_blank" rel="noopener">according</a> to The Block's data.</p> <p><iframe frameborder="0" height="420" src="https://embed.theblockcrypto.com/data/crypto-markets/futures/btc-liquidations/embed" title="BTC Liquidations" width="100%"></iframe></p> <p>Traders going long on crypto also <a href="https://www.theblockcrypto.com/data/crypto-markets/futures/long-liquidations">took</a> a hit, with $99 million in long liquidations happening on Tuesday — bringing the total combined liquidations, both long and short, to around $786 million. </p> <p><iframe frameborder="0" height="420" src="https://embed.theblockcrypto.com/data/crypto-markets/futures/long-liquidations/embed" title="Long Liquidations" width="100%"></iframe></p> <p>A drop in the DXY dollar index could be another reason for bitcoin's positive price movements, <a href="https://twitter.com/NoelleInMadrid/status/1584986165664702464?s=20&amp;t=DOLGCUuutZxKT3qleEMYmw">according</a> to Noelle Acheson, former head of market insights at Genesis and author of "Crypto is Macro Now." Bitcoin's negative correlation to movements in the U.S. dollar seemingly proved beneficial to crypto markets. </p> <div id="attachment_179907"class="wp-caption aligncenter" style="max-width: 2236px;"><img class="has-caption wp-image-179907 size-full" src="https://www.tbstat.com/wp/uploads/2022/10/DXY_2022-10-26_10-16-34.png" alt="" width="2226" height="1366" /><p class="wp-caption-text"><span style="font-size: 8pt;"><a href="https://www.tradingview.com/chart/?symbol=TVC%3ADXY"><em>DXY chart by TradingView</em></a></span></p></div> <p>Acheson also noted expectations that continued aggressive rate hikes from the U.S. Federal Reserve have been tempered recently — reflected by the CME's FedWatch tool. </p> <div id="attachment_179905"class="wp-caption aligncenter" style="max-width: 2010px;"><img class="has-caption wp-image-179905 size-full" src="https://www.tbstat.com/wp/uploads/2022/10/target-rate-probabilitie-3.jpeg" alt="cme rate hike expectations" width="2000" height="1000" /><p class="wp-caption-text"><span style="font-size: 8pt;">Source: <a href="https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html">CME Group</a></span></p></div> <p>Markets are now more confident the Fed will increase rates by 50 basis points at its December meeting, rather than persisting with 75 basis points. </p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>