The crypto market has seen a severe decline and Bitcoin, Ethereum, and XRP price have been among the most affected assets.
In the last 24 hours, there has been an increase in sell-offs and liquidations. This is due to several economic and market conditions.
Bitcoin, Ethereum, and XRP Price See Significant Losses
Bitcoin price fell by 7.2% and traded between $106,500 and $98,800 on CoinMarketCap. Similar to Bitcoin, Ethereum fell by 9% and was trading at just above $3,500.
XRP was the biggest loser among the largest cryptocurrencies, down 19% to $2.2 from $2.6.
Similar to other Cryptocurrencies, Solana (SOL) also faced the heat and slid under $200, erasing almost 12% of its value.
Combined, these losses caused over $800 million in liquidations in one day, as per the data from CoinGlass.
Hawkish Federal Reserve Sparks Investor Concerns, Bitcoin Price Recovers
According to analyst Ali Martinez, the Federal Reserve’s policy change has become one of the main reasons for the crypto market crash.
After the latest FOMC meeting, the Fed Chair Jerome H. Powell stated that the board has decided to cut the interest rate by 25 basis points to 4.25–4.5%.
Although the rate cut was as expected, Powell’s remarks on the “higher-for-longer” inflation path affected the market negatively.
The central bank shifted its inflation forecast for 2025 from 2.1% to 2.5%. This indicates a slower pace of rate cuts in the next year.
Concerns arising from the unpredictable inflation and monetary policy forced investors to avoid any investment risks, including cryptocurrencies.