The cryptocurrency market lost nearly $1.25 billion on Thursday.
Fed chair Jerome Powell announced hawkish predictions for 2025.
Analysts believe the crypto market pullback is temporary.
The cryptocurrency market lost nearly $1.25 billion on Thursday following a hawkish statement from the U.S. Federal Reserve after the latest Federal Open Market Committee (FOMC) meeting. Fed chair Jerome Powell announced a 25 basis point rate cut, which should be positive for the digital assets market. However, things turned out differently because of Powell’s 2025 predictions.
According to Powell, the Federal Reserve predicts higher inflation and only two interest rate cuts next year. The Fed chair’s follow-up statement shocked the crypto market, leading to massive declines in cryptocurrency prices. Bitcoin crashed over 7% in less than 24 hours to drop below $96,000.
Crypto Liquidations and Price Declines
Coinglass data shows Bitcoin’s liquidation was over $45 million. Ethereum, the second-largest cryptocurrency by market capitalization, had nearly $30 million in liquidation. Most top cryptocurrencies fell after the Fed’s hawkish statement. Dogecoin, the flagsh…
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