Bitcoin Drops Triggers: Due to Bitcoin’s (BTC) precipitous dive and subsequent liquidations, the cryptocurrency market witnessed a steep decline on Tuesday. Traders employing leverage lost $440 million as the price of bitcoin dropped to $64,600 in the early hours of Asian trading.
According to CoinGlass’s data, leveraged long positions took a significant hit the past day. Losses from long Bitcoin bets were over $420 million (or 87.5% of the total). Traders with high hopes for Bitcoin throughout the near term were caught off guard by the unexpected price spike.
Bitcoin Slide Causes Crypto Market Selloff
Three hundred and thirty-six million dollars worth of long positions were lost across significant platforms such as Binance, OKX, and HTX. Despite the harm, Bitcoin Drops Triggers has demonstrated some resilience and is trading at more than $65,390. Nevertheless, the consequences are still being felt across the cryptocurrency market as a whole.
Additionally, Ethereum (ETH), the second-largest cryptocurrency, experienced a decrease of about 2.18% in the past day and is currently trading at around $3,440. This decline was triggered by the drop in Bitcoin, which caused a chain reaction that affected other cryptocurrencies. Solana (SOL), Toncoin (TON), and Cardano (ADA), which are all popular alternative cryptocurrencies. Performed even worse, with a decline of 4.70 percent, 5.20 percent, and 6.70 percent, respectively.
Even more precipitous drops were experienced by the meme coin industry. In the previous twenty-four hours, the value of Dogecoin (DOGE) was sometimes known. The “internet currency of dogs” has decreased by roughly 8.40%, presently trading at $0.1219. Other meme currencies, such as Shiba Inu, PEPE, Dogwifhat, and Floki, saw much more significant losses, with dips greater than 10%.
Also Read: Binance Exit Russia: Web Traffic Drops 30%
Crypto Market Rebound Slowed by Fed Rate Hike
The struggle against inflation is partially responsible for the recent market sentiments observed. The Federal Reserve decided to maintain the interest rate at a 5.25% to 5.5% level, the highest level in 23 years. As a result, the Federal Reserve is exercising caution about. The relaxation of monetary policy until there are unambiguous indications of lower inflation.
Although there has been a little decrease in inflation, with consumer prices increasing by 3.3% in May compared to 3.4% in April, inflation is still higher than the Federal Reserve’s target of 2%. However, there has been some progress in lowering inflation. Federal Reserve Chairman Jerome Powell stated that additional evidence is required before interest rates can be reduced.
As opposed to the three rate cuts anticipated in the past, the Federal Reserve now expects. Only one rate decrease in 2024. While the Federal Reserve is working through the difficulties of inflation, investors should expect. The cryptocurrency market will continue to be unpredictable and may experience price swings.
