The Fed interest rate decision made last Wednesday shocked the cryptocurrency markets. The Bitcoin (BTC) price experienced a sharp 3 percent drop as Fed Chair Jerome Powell indicated that interest rates would remain unchanged and a possible interest rate cut would occur in the future. As a result of this drop, $56 million worth of Bitcoin was liquidated in the last 24 hours.
The FED decision deeply affected the Bitcoin price
The generally expected decision in the market, leaving interest rates unchanged, led investors to sell. This situation was not limited to Bitcoin alone. Similar selling pressure was experienced in altcoins as well, and the total amount of liquidation reached $193 million. Bitcoin and Ethereum accounted for more than half of these liquidations.
According to the data, while $45 million worth of long positions (contracts purchased with the expectation of an increase) were liquidated in Bitcoin, $10.94 million worth of short positions (contracts purchased with the expectation of a decrease) were liquidated. In Ethereum, a total of $55 million was liquidated, 80 percent of which came from long positions. The Ethereum price also fell 3.3 percent to below $3,200.
New developments in Mt. Gox payments
On the other hand, the bankrupt crypto exchange Mt. Gox is also triggering the decline in BTC. The company made an official statement on July 31 regarding the return of Bitcoin and Bitcoin Cash. Over the past month, assets were distributed to more than 17,000 creditors. Peter Schiff, one of the important critics of Bitcoin, stated that it was unfounded to be happy early about the possible interest rate cut to be made in September. Questioning Powell’s confidence in achieving the inflation target, Schiff stated that if he did not have confidence now, there was no reason for him to have confidence in September.
According to Schiff’s claim, Powell postponed the interest rate cut to September in order to give investors the wrong impression because he knew that inflation would not fall to 2 percent. In addition to Bitcoin, altcoins also experienced sharp declines. Solana price fell by 6.6 percent, while XRP fell by the same amount. XRP, which rose by over 30 percent in July thanks to the positive developments in the Ripple-SEC case, significantly regained its gains with this decline. While this volatility in the cryptocurrency markets worries investors, experts state that the course of the market in the coming period will depend on the Fed’s statements and economic indicators.
What is the latest situation in other cryptocurrencies?
As a result, the Fed interest rate decision that took place in the past days caused a significant decline in the cryptocurrency markets. While many cryptocurrencies, especially Bitcoin, lost significant value, an uncertain atmosphere prevailed in the market. Although all altcoins experienced a decline, some performed better than others. Some altcoins such as Beam, Kaspa, Notcoin and eCash gained value despite the decline in the market. On the other hand, altcoins such as Popcat, Mog Coin, dogwifhat and THORChain experienced greater losses.
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Yazının devamı için Bitcoin Shook by FED Decision: Tens of Millions of Dollars in Liquidation!