Currently, the biggest cryptocurrency is trading at $61,592 with an intraday rise of 0.30% to reclaim the $61,000 level after a low of $60,433. Amid the downfall, the bearish ripples lead to a massive supply in altcoins, resulting in a drop under $3,000 in Ethereum, a crash in meme coins, and a market-wide wave of liquidations.
Over the past 48 hours, the crypto market has witnessed a huge wipeout, with almost $500 million in long positions getting rekt. As the bearish powers are rising, let’s find out why the crypto The recovery rally before the FOMC meeting and the positive July CPI data results formed a bullish broader sentiment. Further, the interest of three major US pension funds expressed interest in buying Bitcoin through the ETFs cemented the sentiment.
However, the long-anticipated rate cut was delayed in theEarlier this week, despite Mt. Gox distributing Bitcoins worth billions to its creditors, 40% of these were sent to exchanges. With minimal pressure on BTC, the price soared. However, the transfer of $3 billion to exchanges from the $9 billion due, the sell-off wave from the distribution run could fuel the bearish run in the crypto market. FOMC meeting, with the next possible decision in September. Hence, the excitement in the crypto market subsides quickly, resulting in a bearish turn of is crashing.