Bitcoin Price Falls Towards $100,000 Despite Fed’s Latest Rate Cut

The US Federal Reserve announced a third consecutive rate cut, this time by 25 basis points.

Unlike previous occasions in recent months, bitcoin and the rest of the crypto market went south immediately and violently.

Perhaps the reason for this lies in the words of Fed Chairman Jerome Powell, who hinted that the central bank may stop its current policy of cutting key interest rates due to the alarming CPI data which came out in November and October.

“It was a closer call today, but we decided it was the right call,” he said.

The price of Bitcoin fell sharply as the asset plummeted to a multi-day low of $100,250, and the free fall doesn’t appear to be anywhere near its end. The cryptocurrency had already gone from $108,300 to $105,000 in one day, a 36-hour decline of more than eight thousand.

Bitcoin/Price/Chart 18.12.2024. Source: TradingView

Naturally, the naturally more volatile altcoins felt the pain even more. XRP is among the poorest on a daily basis as it briefly dipped below $2.2 before rebounding to $2.3. However, Ripple’s native token is down more than 11% on a daily basis.

DOGE, AVAX and SHIB price drops are similar, while ETH, BNB and SOL have seen slightly less painful drops.

Still, the total crypto market cap, which had already fallen by $150 billion since yesterday, has lost another $200 billion and is down to $3.650 trillion in CG.

The total value of destroyed positions has soared to nearly $700 million, according to CoinGlass. Longs are responsible for the lion’s share ($600 million), while the total number of liquidated traders exceeds 250,000 on a daily basis.

Liquidation heat map. Source: CoinGlass SPECIAL OFFER (Sponsored) Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

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