Last night, the American Federal Reserve (FED) announced a 50 basis points cut in its key rates. This decision provoked mixed reactions in the crypto market, causing massive liquidations reaching new highs.
Market Reaction to FED Rate Cut
The crypto world experienced a real shockwave after the FED rate cut announcement. Liquidations soared, reaching nearly $200 million in less than 24 hours. According to Coinglass, most of the liquidated positions ($126 million) were shorts, indicating an unexpected bullish trend. The phenomenon particularly affected the boldest traders, with over 66,000 liquidations recorded. Coinglass provides a detailed view on this.
Bitcoin Leads Liquidations
While Ethereum saw significant liquidations ($35 million), it was Bitcoin that stole the show with $75 million liquidated after a 2.9% price increase. BTC was flirting with $62,000, marking a decisive turn. The largest liquidation, worth $8.9 million in the BTC-USD pair, took place on Bybit, disrupting the positions of some overly confident traders.
Impact on Overall Market Capitalization
The overall crypto market capitalization increased by 1.9%, reaching $2.23 trillion. Trading volume exceeded $120 billion, proving that the euphoria is not about to subside. Key figures: * 46% increase in liquidations in 24 hours * $200 million liquidated * 66,000 traders liquidated Global open interest in cryptos increased by 4%, reaching $58.7 billion. This rise reflects the growing FOMO (fear of missing out), driving investors to act.
The FED rate cut has ushered the crypto market into a new level of turbulence, triggering significant liquidations and an increase in market capitalization. Analysts predict further price fluctuations, possibly a rise in Bitcoin to $64,000 in the coming weeks.
Comments