#Bitcoin The bloodbath caused by the last Federal Reserve (Fed) meeting of 2024 was not limited to the stock markets. The cryptocurrency market, known for its volatility, proved to be even more vulnerable to interest rate signals in the United States. And the change in the US central bank's stance hit bitcoin (BTC) and other cryptocurrencies like a bomb, causing one of the largest sell-offs in the history of the currency.
After weeks of blue skies and successive records, bitcoin suffered a 13.4% drop, falling from its all-time high of US$108,000 to US$92,000. At the time of writing this text, the cryptocurrency had already recovered part of its value, trading at US$97,676.97, according to data from CoinMarketCap.
Altcoins suffered even steeper losses than bitcoin, with ethereum (ETH) down 16%, while dogecoin (DOGE) plummeting 26% at one point. The memecoin segment as a whole proved particularly volatile, with several posting double-digit declines. The total cryptocurrency market cap fell 11.8% in 24 hours to $3.33 trillion, according to CoinGecko. Historic cryptocurrency sell-off The signaling of a neutral interest rate scenario in the United States displeased investors who had expected more aggressive cuts in 2025, creating a climate of uncertainty in the market. Combined with the all-time high reached by crypto assets, this outlook spurred the liquidation of portfolios and profit-taking by many investors. In just 24 hours, a total of $1.4 billion worth of cryptocurrency positions were liquidated
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