Bitcoin Drop Causes Triggered by the unexpected slide of Bitcoin (BTC) and the subsequent liquidations, the cryptocurrency market experienced a massive decline on Tuesday. As a result, leveraged traders incurred a total loss of $440 million while the price of Bitcoin Drop Causes plunged to $64,600 in the early hours of Tuesday in Asian trading.
As per data from CoinGlass, leveraged long positions suffered heavily during the last day. The losses of long Bitcoin bets were more than $420 million, or 87.5% of the total. Traders who were strongly confident about Bitcoin’s near-term bullish trend were caught on the back foot by this unexpected price hike.
Bitcoin Slide Causes Crypto Market Selloff
Sadly, the aggregate loss in long positions on setups like Binance, OKX, and HTX is $336 million. Bitcoin Drops Triggers While exceeding the level of $65,390, Drop Causes still exhibits some resilience. Nevertheless, the impact has extended to the entire cryptocurrency market.
Moreover, Ethereum (ETH), the second-largest crypto, also moved down by around 2.18% over the past day and is currently priced at about $3,440. This fall was catalyzed by the fall in Bitcoin, which led to other cryptocurrencies. Solana (SOL), Toncoin (TON), and Cardano (ADA) are all three of the most popular altcoins. However, they registered a more significant decline, with a decrease of 4.70 per cent, 5.20 per cent, and 6.70 per cent, respectively.
It was even more punishing in the meme coin space. In the last twenty-four hours, the price of Dogecoin (DOGE), often referred to as the ap. A “like a dog to the blockchain” crypto will fall by approximately 8.40% in the current trading at $0.1219. Other meme cryptos, including Shiba Inu, PEPE, Dogwifhat, and Floki, saw huge losses, the lowest of which was over 10%.
Also Read: Binance Exit Russia: Web Traffic Drops 30%
Crypto Market Rebound Slowed by Fed Rate Hike
A key element driving the current stock market reactions is the battle against inflation. The Federal Reserve has kept interest rates in the range of 5.25% to 5.5%, the highest rate since 1987. Thus, the Federal Reserve is acting prudently. Moving away from a strict money policy is the main point here, even if there are no clear signs of inflation cooling down.
Even though inflation has gone down a little, consumer prices increased 3.3% in May compared to the 3.4% rise in April, thus showing that inflation is still higher than the Fed’s 2% target. The succinct thing to mention is the slight decrease in inflation. In contrast, the Federal Reserve has moderately achieved the problem of inflation reduction. Federal Reserve Chairman Jerome Powell stated that more proof is needed before interest rates can be cut.
The Federal Reserve is planning only one rate cut instead of three, which was hoped for before. Moreover, in 2024, only one interest rate relief will be available. While the Federal Reserve is experiencing the hiccups of inflation, among other obstacles, ordinary investors may find that. The unpredictable character of the cryptocurrency market will still be there, and the prices could fluctuate.
FAQs
Which cryptocurrencies were most affected by Bitcoin's price decline?
Ethereum, Solana, Toncoin, Cardano, and meme coins like Dogecoin saw significant losses following Bitcoin’s price drop.
How much did leveraged traders lose during Bitcoin's slide?
Leveraged long positions on Bitcoin incurred more than $420 million in losses, primarily from traders betting on a bullish trend.
What is the impact of the Federal Reserve's actions on the crypto market?
The Fed's rate hikes, aimed at combating inflation, have slowed the cryptocurrency market rebound by maintaining high interest rates.
What is the Federal Reserve's plan for interest rates in 2024?
The Federal Reserve plans to reduce interest rates by just one point in 2024, which is less than previously anticipated.
 precipitous dive and subsequent liquidations, the cryptocurrency market witnessed a steep....){kind=link}