The crypto market continues to face a sharp downturn, losing around 10% in the last 24 hours following the Federal Reserve’s latest policy update.
Bitcoin price plunged nearly 10%, hitting a low of $93,000. This marks a sharp reversal from the recent high of $108,268 reached earlier this week.
This decline brings Bitcoin to its lowest level since mid-November, as it rode a bullish wave spurred by market optimism following Donald Trump’s election victory.
Ethereum faced an even steeper fall, dropping nearly 15% and hitting $3,100, its weakest position since late November.
Binance Coin (BNB), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) also saw double-digit losses, with data showing declines greater than 10%.
Market analysts attribute the widespread selling to the Federal Reserve’s tightening monetary policy. Although the Fed made expected adjustments to borrowing rates, it reduced its forecast for rate cuts in 2025 from four to just two. These hawkish outlooks have added pressure to an already fragile market.
Additionally, the Federal Reserve has clarified that it does not intend to support a proposed government Bitcoin reserve strategy, further dampening market sentiment.
Markus Thielen, head of research at 10x Research, said that the current price level of Bitcoin serves as an essential marker for risk management. He noted that the Fed’s tough policy and possible liquidity adjustments expected from the US Treasury in 2025 have increased market uncertainty.
Liquidation frenzy hits the market.
According to CoinGlass data, recent market turmoil triggered liquidations of over $1.2 billion, impacting 377,618 traders.
Long traders – those betting on price increases – took the brunt of the losses, losing around $1.07 billion. This is one of the biggest setbacks for long traders this year.
Meanwhile, short traders betting on falling prices lost $163 million during the reporting period.
Bitcoin price speculators suffered the largest 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 in long positions and $28.2 million in short positions.
Traders betting on Solana, XRP, and Dogecoin also suffered losses of $55 million, $36 million, and $80 million, respectively.
The largest liquidation took place on Binance, involving a $15 million ETH-USDT transaction, further highlighting the intensity of the recent market volatility.
