On Friday evening, the cryptocurrency market experienced a dramatic surge in volatility, resulting in approximately $400 million worth of liquidations. This event was triggered by Federal Reserve chairman Jerome Powell's statement regarding the possibility of interest rate cuts.
Overview of Liquidations
According to data from CoinGlass, the majority of the losses were attributed to traders holding short positions, amounting to over $304 million of the total liquidations.
Most Affected Assets
Ether (ETH) positions saw the largest losses at $217.16 million as its price surged from $4,200 to $4,650, marking a 10% gain. Bitcoin (BTC) liquidations were $80.04 million, while other altcoins like Solana (SOL) and Dogecoin (DOGE) faced significant losses, with liquidations of $21.77 million and $9.06 million respectively.
Market Reaction to Jerome Powell's Speech
The market remains volatile following Powell's speech, with BTC bouncing off the $111,800 support sharply, raising 4% to $116,183. Powell's remarks about rising employment risks suggest that rate cuts could be on the table next month, impacting risk assets like bitcoin and ether.
Recent events in the cryptocurrency market highlight its high volatility and sensitivity to changes in monetary policy. Time will reveal the further developments and their implications for traders and investors.
