Bitcoin Dips to $64,600 Triggering $480 Million Liquidation
During early Asian hours on Tuesday, the leading cryptocurrency Bitcoin experienced a dip to $64,600, leading to the liquidation of leveraged positions worth $480 million. The Coinglass data revealed that in the past 24 hours, a total of 190,144 traders were liquidated, with the liquidation amount reaching $480.93 million. Out of this total, $420 million constituted long positions.
- Around $372 million in long positions were liquidated on exchanges like Binance, OKX, and HTX.
- Bitcoin has slightly recovered and is currently trading above $65,700.
- This downward trend in Bitcoin also caused a setback in the altcoin market, with Ethereum dropping by nearly 4% in the last 24 hours, now trading at $3,450.
Altcoins Witness Significant Losses Amid Market Downturn
With the entire cryptocurrency market turning red, popular altcoins such as Solana (SOL), Toncoin (TON), and Cardano (ADA) have recorded losses of 8%, 6%, and 8%, respectively. In addition:
- Dogecoin (DOGE) has decreased by nearly 10% over the last 24 hours, currently trading at $0.1221.
- Meme coins like Shiba Inu, PEPE, Dogwifhat, and Floki have also seen a decline of over 10%.
Federal Reserve Announces Plan for a Single Rate Cut in 2024
Following the recent decision to maintain interest rates at 5.25% to 5.5%, the Federal Reserve, for the first time in 23 years, intends to implement only one rate cut in 2024. The decision comes amidst the need for more evidence indicating a slowdown in U.S. inflation despite:
- Rates remaining stable since July 2023.
- Inflation persisting above the Fed’s 2% target despite recent moderate declines.
The government’s report on consumer prices for May indicated a 3.3% annual increase, slightly lower than the 3.4% recorded in April. Although the Fed acknowledged some progress in curbing inflation, it emphasized the necessity to observe further evidence before considering adjustments to monetary policies. Chairman Jerome Powell highlighted the need for caution despite promising signals from the latest Consumer Price Index report.
Hot Take
Despite recent market fluctuations and the Federal Reserve’s cautious approach to rate cuts, the cryptocurrency market remains volatile and influenced by external economic factors. Stay updated on the latest news and be prepared to adapt to changing market conditions.
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