As a seasoned crypto investor with battle scars from the 2017 bull run and the subsequent bear market, I’ve learned to expect the unexpected in this rollercoaster ride we call crypto. However, even with my hard-earned wisdom, I must admit that I was caught off guard by today’s sudden downturn.
In simpler terms, the U.S. Federal Reserve made another reduction in interest rates, decreasing them by 0.25% for the third time in a row.
Instead of following the usual pattern of rising or stabilizing during the past several months when similar events occurred, Bitcoin and the broader cryptocurrency market plunged sharply and quickly this time around.
As a researcher, I’m pondering over the possibility that the recent trend could be influenced by Federal Reserve Chair Jerome Powell’s remarks. He subtly suggested that the central bank might cease its ongoing policy of lowering key interest rates, potentially due to the concerning Consumer Price Index (CPI) figures for November and October that he mentioned.
“Today was a closer call but we decided it was the right call,” he said.
Bitcoin’s value dropped sharply, reaching a low not seen in several days at around $100,250. It appears the descent may continue as the cryptocurrency slid from $108,300 to $105,000 within 24 hours, representing a decline of over $8,000 during that period.
It’s not surprising that highly volatile altcoins experienced greater distress. In fact, just moments ago, XRP took a dip below $2.2 before quickly recovering to $2.3. However, it’s important to note that Ripple‘s native token has dropped by more than 11% over the daily period.
The decreases in the prices of Dogecoin (DOGE), Avalanche (AVAX), and Shiba Inu (SHIB) are quite comparable, whereas Ethereum (ETH), Binance Coin (BNB), and Solana (SOL) have experienced somewhat less severe drops.
Despite a previous drop of approximately $150 billion over the past day, the total market capitalization of cryptocurrencies has further declined by an additional $200 billion, now standing at around $3.65 trillion on CoinMarketCap.
The combined worth of destroyed investment positions has soared nearly to $700 million, as reported by CoinGlass. Most of this value, approximately $600 million, can be attributed to long-term investors. Moreover, over 250,000 traders have been liquidated on a daily basis.
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2024-12-19 00:02