After the Federal Reserve's interest rate decision was announced today, the crypto market began to plunge, with Bitcoin crashing below the $100,000 mark and Ethereum also dipping to $3,617. The total liquidation amount across the network in the past 24 hours reached $702 million, with over 253,000 people liquidated.
At 3 AM today, after the Federal Reserve's interest rate decision was announced, although a rate cut of 25 basis points was announced, lowering the benchmark rate to 4.25% - 4.5%, Bitcoin began to enter a downward trend due to reduced expectations for rate cuts next year, plunging from a high of $104,800 to a low of $100,000, with a short-term decline of up to 4.6%. As of the time of writing, it is reported at $100,504.
Another possible reason for the selling pressure is that Federal Reserve Chairman Powell said at the FOMC press conference: 'We are not allowed to hold Bitcoin.' Regarding the legal issues of holding Bitcoin, Powell stated: 'This is something for Congress to consider, but we do not intend to seek changes to the law.' However, Powell is not wrong; the current regulations do not allow the Federal Reserve to hold BTC.
Ethereum dipped to $3,617
Similarly, Ethereum also started to decline after the interest rate decision was announced, dropping from a high of $3,907 to a low of $3,617, with a short-term decline of 6.8%. As of the time of writing, it is reported at $3,649, down 6.45% in the past 24 hours.
$702 million liquidated in the past 24 hours
On the other hand, according to Coinglass data, the total liquidation amount across the cryptocurrency network in the past 24 hours reached $702 million, with long positions liquidated at $608 million being the majority, and short positions liquidated at $93.57 million, with over 25,300 people liquidated.
