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After the Federal Reserve lowered interest rates by 0.25%, the cryptocurrency market liquidated more than $239 million in just minutes. Bitcoin briefly fell below $100,000, and other major coins followed suit.
On December 19, Federal Reserve He cut the key interest rate by 25 basis points and warned of cuts in the following years. The Fed has hinted that it is likely to cut interest rates only twice in the coming new year.
Fed Chairman Jerome Powell explained that as the US government’s stance becomes less restrictive, the agency can “be more cautious as we consider further interest rate adjustments.”
“We believe the economy is there [a] Really good place. “We think the policy is in a really good place.”
After the interest rate cut by the Federal Reserve, encryption The market saw total long liquidation rise by $200 million from just $39.73 million to $239.2 million just 30 minutes after the news broke, based on Coinglass. Data. In the past 24 hours, there has been a total of $853 million in liquidations of crypto assets, with Ethereum (Ethereum) drives the cost to $134.9 million.
according to Data From crypto.news, Bitcoin (Bitcoin) fell below the $100,000 threshold where it fell by 5%, but recovered slightly after a short period. Bitcoin is currently trading at $101,705, with the price down 2.35% over the past 24 hours of trading.
Other major cryptocurrencies including Ethereum and Solana (Sol), and XRP (XRP) After the fall of Bitcoin. In addition, there are a number of altcoins such as DOGE (Doug) and baby (baby) also suffered after the Fed cut.
Ethereum price fell by 0.68% after the Federal Reserve interest rate cut. In the past 24 hours, Ethereum price fell by 4.5% and maintained its price at $3,674. Meanwhile, the price of XRP saw a decline of approximately 3%. Over the past 24 hours of trading, the price of XRP has fallen by approximately 7% and is settling at $2.36.
Solana was not immune to the effects of the Fed’s cut either. the Same angle The preferred stock saw its price decline by 1.15% and continued its downward trend to 3.58% during the past 24 hours of trading. The token is currently trading at $208.98.
The altcoin market also suffered, with the total market capitalization of memecoins falling nearly 8% to $105.2 billion according to CoinMarketCap. The number one meme coin by market cap, Dogecoin, fell more than 7% shortly after the Fed cut and has not recovered since. DOGE is currently trading at $0.36.
Meanwhile, PEPE fell nearly 4% shortly after the Fed’s cut and fell more than 11% over the past 24 hours, according to Data From crypto.news.
The Fed’s cautious approach to future interest rate cuts indicates a continued focus on controlling inflation, which could strengthen the dollar. This may indicate a potential decline in public investment in alternative assets such as cryptocurrencies.
Disclosure: This article does not constitute investment advice. The content and materials contained on this page are for educational purposes only.
