On December 18, 2024, the cryptocurrency market experienced a massive collapse after the decision
The Federal Reserve** is cutting interest rates. Here are the details and reasons behind this collapse:
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📉 Market Losses
Market Cap: The total value of cryptocurrencies fell by more than $220 billion, falling from $3.7 trillion to $3.46 trillion.
Bitcoin: Bitcoin fell from around $105.3K to $98.8K, a loss of over $7,000 in minutes.
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🔍 Causes of the collapse
1. Interest rate cut decision: The Federal Reserve cut interest rates by a quarter of a percentage point, which raised investor concerns about the impact on riskier assets.
2. Dovish Statements: Federal Reserve Chairman Jerome Powell’s statements were hawkish, adding to the uncertainty in the markets.
3. Mass Selling Wave: After the decision was issued, a mass selling wave broke out in the market, which exacerbated the losses.
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📝 Conclusion
The Fed's decision caused panic in the cryptocurrency market, leading to massive liquidation and huge losses in market value. Follow economic developments and their impact on financial markets, especially in the current circumstances.
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Stay tuned! 📊💡
