The crypto market experienced significant losses exceeding $400 million in the last 24 hours after Fed Chair Jerome Powell announced the decision to keep interest rates at 4.25-4.5%.
Market Losses
Data shows that liquidations soared to over $429 million in the last 24 hours. Most of this liquidated amount came from long positions, with $327.21 million wiped out.
Impact on Bitcoin and Ethereum
The leading cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), suffered the most. Liquidations amounted to over $101 million for ETH and $72.45 million for BTC. BTC dropped to a low of $115,800.83 but has since recovered to $118,693.84. Similarly, ETH fell to $3,683.14 before rising back to $3,868.92.
Analysts' Views on Potential 2025 Rate Cuts
Following Powell's comments, betting odds on the Kalshi platform showed divisions regarding the likelihood of rate cuts in 2025. The odds of 'Exactly 0 cuts' have increased by 9% to 28%, while the chances for 'Exactly 1 cut' rose to 33%.
The crypto market remains under pressure, with uncertainty surrounding economic policies affecting trading and the prices of major cryptocurrencies. Investor reactions to Fed statements keep the situation tense.
