"The hawkish effect appears!!! The Federal Reserve pressured altcoins to plummet, and the encryption market was in deep panic."
Crypto markets took a hit after the Federal Reserve announced a 25 basis point interest rate cut and hinted at fewer rate cuts in the future than the market expected. Bitcoin lost key support levels, altcoins generally fell, and the overall market liquidation amount exceeded $860 million.
Bitcoin prices briefly fell below $100,000, hitting a low of $98,900 before recovering slightly to near $102,000 (at press time). This performance stems from Fed Chairman Powell's hawkish remarks, which weakened the market's confidence in future easing expectations. The expectation of only two interest rate cuts in 2025 is in sharp contrast to the previously optimistic four rate cuts, exacerbating investor caution.
The decline in the altcoin market was even more significant. Ethereum (ETH) fell nearly 5%, Dogecoin (DOGE), XRP, and ADA were all down more than 6%, and Solana (SOL) fell 3.6%. Liquidation data shows that investor sentiment has turned sharply bearish in the short term and market volatility has increased significantly.
Despite the significant market correction, some analysts remain cautiously optimistic about the future. Economist Alex Krueger noted that the current correction may be an overreaction by the market. As leverage and speculation subside, the downside risks of mainstream crypto assets such as Bitcoin have been significantly reduced. Blockchain data platform Santiment also said that Bitcoin has shown a certain degree of resilience compared with traditional markets. Once the market stabilizes, it may usher in a rebound opportunity.
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