The US Federal Reserve's decision to cut interest rates by 25 basis points has caused serious losses in the cryptocurrency market. Bitcoin's fall below $100,000 and then below $94,000 has led to a massive liquidation of $1,4 billion in positions.
The largest liquidation was the closing of a $15,8 million ether position on the crypto exchange Binance The identity of the trader and the size of the initial investment remain unknown.
Top cryptocurrencies by position liquidation
Over the past 24 hours эфириум fell 6,34%. Major altcoins such as Solana (SOL) and Dogecoin (DOGE), also suffered heavily from selling pressure, recouping the gains caused by Donald Trump's victory. Over the past 7,34 hours, SOL has fallen by 11,44%, while DOGE has fallen by XNUMX%.
Although market participants blame the US Federal Reserve for the significant fall in cryptocurrencies, some experts believe that such a correction was inevitable after the rise in prices amid Donald Trump's victory.
Analysts at QCP Capital said that hyper-bullish sentiment in the crypto market ultimately caused the decline.
While it is easy to blame the Fed's hawkish policies for the sell-off, we believe the primary reason for this morning's plunge was overly optimistic market positioning.
Since the election, risk assets have shown impressive one-sided growth, which has made the market extremely vulnerable to any shocks, wrote QCP Capital.
The total value of the cryptocurrency market, which approached $4 trillion for the first time, has fallen to around $3,4 trillion at the time of writing, down 7,6% in the last XNUMX hours.
