After the Fed's expectations of a rate cut continued for some time, the global cryptocurrency market began to pick up. In the past day, the cumulative market value of cryptocurrencies rose by nearly 3% to $2.14 trillion. The 24-hour trading volume soared by 20% to break the $91 billion mark.
In a landmark move, the Federal Reserve cut interest rates by half a percentage point, marking its first rate cut since the early days of the COVID-19 pandemic. The interest rate cut is as high as 50 basis points. It is the most significant interest rate cut since the 2008 financial crisis. It is designed to stimulate the vitality of the labor market and effectively alleviate high inflation pressure.
In the cryptocurrency market, Bitcoin (BTC) once climbed to a high of $62,000. However, this strong trend was also accompanied by a sharp sell-off of cryptocurrency bulls. According to data released by Coinglass, the market has experienced unprecedented volatility in the past 24 hours, with more than 67,000 traders experiencing forced liquidation and the total liquidation amount surprisingly exceeding the $200 million mark. Among them, the most eye-catching single liquidation occurred on the Bybit platform, involving the BTC/USD trading pair, with an amount of up to $8.93 million.
It is worth noting that despite the tense market atmosphere, statistics show that about 61% of liquidations (a total of US$123.7 million) ultimately belonged to short positions, reflecting that many traders originally expected the Fed’s interest rate cut decision to trigger a sharp drop in the cryptocurrency market, but the reality is that mainstream digital currencies such as Bitcoin have shown unexpected resilience, and even showed an upward trend after the interest rate cut.
Bitcoin, in particular, has shown a clear bullish trend driven by the news of rate cuts, and broke through the important psychological level of $62,000 on Thursday. BTC's intraday trading trend was quite volatile, hovering around $59,000, but then quickly recovered and stabilized above $62,000, demonstrating its strong resilience and potential as a market leader.
Data shows that more than $75 million worth of Bitcoin price bets were liquidated in the past 24 hours. $57 million worth of liquidated positions (75%) turned out to be short bets. BTC price surged 3% in the past 24 hours, indicating positive investor sentiment. At press time, Bitcoin is trading at an average price of $62,034.
Altcoins gain momentum
Ethereum (ETH) has been struggling with selling pressure, gaining around 4% in the past 24 hours. The recent gains have helped Ether erase the losses of the past seven days, but the 30-day indicator shows that it is still down 10%. At press time, ETH is trading at an average price of $2,413.
Top altcoins such as Solana (SOL) and Cardano (ADA) also saw positive momentum. SOL price rose by 6% in the past 24 hours, while ADA gained 4.5%. The meme-based cryptocurrency category gained 2% as Dogecoin (DOGE) and Shiba Inu (SHIB) surged by 4% each.
