The cryptocurrency market continues to face a sharp decline, losing around 10% in the last 24 hours following the latest policy update from the Federal Reserve.
The price of bitcoin plummeted almost 10%, reaching a low of $93,000. This marks a marked change from its recent high of $108,268 earlier this week.
The drop takes bitcoin to its lowest level since mid-November, when it was on a bullish wave fueled by market optimism following Donald Trump's election victory.
ethereum faced an even steeper decline, falling nearly 15% and hitting $3,100, its weakest position since late November.
Binance Coin (BNB), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) also posted double-digit losses, with data showing drops of over 10%.
Market analysts attribute this widespread sell-off to the Federal Reserve's tighter monetary policy stance. Although the Federal Reserve made expected adjustments to borrowing rates, it reduced its forecast for rate cuts in 2025 from four to just two. This aggressive outlook has added pressure to an already fragile market.
Furthermore, the Federal Reserve clarified that it has no plans to support any bitcoin reserve strategy proposed by the government, further dampening market sentiment.
Markus Thielen, Head of Research at 10x Research, <a target="_blank" href="https://x.com/10x_Research/status/1869982781444624596″>he said that The current bitcoin price level serves as a critical marker for risk management. He noted that the Federal Reserve's firm policy stance and possible liquidity adjustments expected from the US Treasury in 2025 have increased market uncertainty.
The liquidation frenzy hits the market.
According data According to CoinGlass, the recent market turbulence caused liquidations of more than $1.2 billion, affecting 377,618 traders.
Long traders (those betting on price increases) bore the brunt of the losses, losing approximately $1.07 billion. This marks one of the biggest setbacks for long-term traders this year.
Meanwhile, short traders who bet on falling prices lost $163 million during the reporting period.
bitcoin price speculators suffered the most significant losses, with $279 million liquidated, including $227.5 million in long positions. ethereum traders followed closely with $277 million in liquidations, including $248.7 million of long positions and $28.2 million of short positions.
Traders who bet on Solana, XRP, and Dogecoin also suffered losses of $55 million, $36 million, and $80 million, respectively.
The most significant liquidation occurred on Binance, involving a $15 million eth-USDT transaction, further highlighting the intensity of the recent market volatility.
