🚨FOMC Scares Crypto: $400 Million Liquidated In Massive Panic Sell-Off🔥
🗓️ On June 12, the FOMC held its fourth policy meeting of the year and decided to keep interest rates steady at 5.25% to 5.5%. Bitcoin and Ethereum felt the impact immediately. 📉 Bitcoin's price plummeted from $70,000 to $66,000, and Ethereum followed suit, dropping from $3,700 to $3,400. The FOMC’s decision not to cut rates, despite previous hints at reductions, led to nearly $400 million in liquidations, rattling investor confidence across the board. Altcoins like Cardano, Solana, and Ripple weren't spared either, each dropping by at least 8%. 📊 US spot Bitcoin ETFs saw net outflows of $200 million, breaking a 19-day streak of net inflows.
💬 Federal Reserve Chair Jerome Powell emphasized the progress in tackling inflation but maintained a hawkish stance 🦅, reinforcing the Fed’s commitment to a 2% inflation target. This stance means no rate cuts for now, adding to the volatility in the crypto market.
🔍 There was a glimmer of hope when the US Consumer Price Index report showed a year-over-year inflation rate of 3.3% for May, slightly cooler than the expected 3.4%. However, this optimism was short-lived as the crypto market quickly reverted to its initial levels, reflecting ongoing investor anxiety and economic uncertainty.
🌍 While the US remains firm on not cutting rates prematurely, other regions are taking different paths. The European Union and Canada, for example, are implementing rate cuts this year, highlighting the varied economic strategies across the globe.
📈 In the US, a Grayscale-backed survey reveals that 41% of voters are now more attentive to Bitcoin amid persistent inflation. This growing interest underscores the increasing public scrutiny of traditional economic policies and a search for alternative investments in a high-inflation environment.
