After the announcement of the Federal Reserve's interest rate decision in the United States today, the cryptocurrency market began to plummet. Bitcoin crashed below the $100,000 mark, and Ethereum also dipped to $3,617. The total liquidation amount in the past 24 hours reached $702 million, with over 253,000 people liquidated.
After the announcement of the Federal Reserve's interest rate decision at 3 AM today, although a 25 basis point cut was announced, lowering the benchmark interest rate to 4.25% to 4.5%, the expectation of a rate cut next year was reduced, and Bitcoin began to enter a downward trend, crashing from a high of $104,800 to a low of $100,000, with a short-term drop of up to 4.6%. As of the time of writing, it is reported at $100,504.
Another possible reason for the selling pressure is that Federal Reserve Chairman Powell stated at the press conference following the FOMC meeting: "We are not allowed to hold Bitcoin." Regarding the legal issues of holding Bitcoin, Powell said: "This is something Congress needs to consider, but we have no intention of seeking to change the law." However, Powell was not wrong; the current regulations do not allow the Federal Reserve to hold BTC.
Ethereum dipped to $3,617
Similarly, Ethereum also began to decline after the announcement of the interest rate decision, starting from a high of $3,907 and dipping to $3,617, with a short-term drop of 6.8%. As of the time of writing, it is reported at $3,649, a decrease of 6.45% in the last 24 hours.
Liquidations of $702 million in the past 24 hours
On the other hand, according to Coinglass data, in the past 24 hours, the total liquidation amount in the cryptocurrency market reached $702 million, with long positions liquidated at $608 million being the majority, and short positions liquidated at $93.57 million, with over 25,300 people liquidated.
