The cryptocurrency market experienced a major shock as the total value of liquidated orders reached 1.4 billion USD within 24 hours after the Federal Reserve indicated that the frequency of interest rate cuts in 2025 would be less than expected.

Causes and Developments

  • Bitcoin plummets:
    Price $BTC has fallen to a low 92,000 USD, down 13.4% from the record high set just three days earlier.

  • Altcoins suffer heavier losses:

    • $ETH : Down 16% in 24 hours.

    • $XRP : Lost 18% of its value.

    • Dogecoin: Plummeting 26%.

  • Historic liquidation event:
    A trader in the Wealth Group community commented that this could be "the largest liquidation event in cryptocurrency history" when including recent liquidations.

Pressure from Fed Policy and Traditional Markets

  • Federal Reserve Chairman Jerome Powell stated that the frequency of interest rate cuts in 2025 will be less than expected, raising concerns in the market.

  • Widespread impact: Not just crypto, major stock indices such as the S&P 500, Nasdaq 100 (USA), and FTSE (UK) also recorded declines.

  • Large outflows from Bitcoin ETF:

    • 680 million USD has been withdrawn from Bitcoin ETF funds on Thursday, the highest level since these funds launched in January this year.

Hope for the Future

  • Political expectations: With cryptocurrency-supporting President Donald Trump set to take office in January next year, investors expect the legal environment to become more favorable.

  • Support from ETFs: Bitcoin ETFs continue to buy BTC at a faster rate than mining output.

Conclusion

Although the current market is facing selling pressure and declining liquidity, some investors believe this is just a "pause" on the path to new highs in 2025. However, this strong volatility also serves as a reminder of the potential risks in the crypto market.