Market’s Sharp Reaction to Jerome Powell’s FOMC Speech
- Within 24 hours, nearly $866.37M in futures positions were liquidated across major CEXs.
- Bitcoin, which reached a new ATH at 108K, dropped drastically, affecting the entire market.
- Speculations were rife that Powell’s speech was also a driving force for Bitcoin’s decline.
Within 24 hours, the whole cryptocurrency community was left in disbelief. Nearly $866.37 million in crypto positions were liquidated across major exchanges, hitting 299,277 traders. This includes $752.22 million in long positions and $114.15 million in short positions. Moreover, the U.S. stock market witnessed a severe loss of over $1.05 trillion, with every entity in the red zone.
Bitcoin (BTC), the leading cryptocurrency by market capitalization, dragged the crypto market downwards after crashing from a new all-time high above $108,000 set earlier this month in December. At the time of writing, BTC is valued at $101,018, down by 2.63% in the last 24 hours. Ethereum (ETH) closed 3.96% down at $3,668.25, while Binance Coin (BNB) was 0.83% down, XRP 2.58% down, and Cardano (ADA) 5.62% down.
Last week, Bitcoin dropped by 3%, with $1.76 billion in liquidated positions. Considered to be the largest liquidation event, the coin dropped to $96K during then. Analysts attribute the latest downturn to macroeconomic uncertainties, high-stake profits, and a shift in investor interest.
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