Bitcoin rebounded from a high of $98,000 to $102,000 yesterday, then started a new wave of decline, dropping to a low of around $95,682 at about 5 a.m. this morning. As of this writing, it is at $97,278, down 3.85% in the last 24 hours.
Liquidations of $1 billion in the last 24 hours.
On the other hand, according to Coinglass data, the total liquidation amount in the cryptocurrency market reached $1 billion in the past 24 hours, with long positions liquidating $859 million, the majority, and short positions liquidating $169 million, affecting over 300,000 people.
Bitwise Chief Information Officer: The Federal Reserve's slowing interest rate cuts will not affect Bitcoin's rise.
One of the biggest reasons for this decline is speculated to be related to the Federal Reserve's announcement yesterday (19th) to cut rates by 1 basis point as expected, but hinted that it will slow down the pace of rate cuts in 2025, only reducing by two basis points instead of the previously expected four.
However, Bitwise CIO Matt Hougan stated earlier on Twitter that the current situation will not hinder Bitcoin's upward trend. Hougan pointed out that the Federal Reserve's signals do indeed have adverse effects on risk assets, and the decline in U.S. stocks and Bitcoin is inevitable, but he believes the current pullback does not signify the end of cryptocurrency, as the correlation between the Federal Reserve's stance and Bitcoin is no longer as tight as before; Bitcoin now possesses intrinsic upward momentum:
I believe this is a minor episode in the process of Bitcoin's rise.
The Federal Reserve's influence on cryptocurrency has diminished; cryptocurrencies now have intrinsic momentum, and the larger trend will still drive Bitcoin's rise, including:
Washington's policy has shifted to support cryptocurrency.
Institutional adoption and ETF flows are continuously increasing.
Governments and corporations will buy Bitcoin.
Blockchain has significant technological breakthroughs.