Last night, the US Federal Reserve (FED) officially announced a 50 basis point cut in its key rates. A decision that was eagerly awaited and immediately sparked mixed reactions in the crypto markets. Some are anticipating a surge, while others are predicting a crash. At the heart of these discussions are the massive liquidations in the crypto sector, which are reaching record highs.
Massive liquidations rock crypto market
The world of cryptos has experienced a real shock after the announcement of the FED rate cut. Liquidations soared, reaching nearly $200 million in less than 24 hours.
According to Coinglassmost positions liquidated (126 million) concerned shortsevidence of an unexpected upward trend. The phenomenon has particularly affected the most daring traders, with more than 66,000 liquidations recorded.
The overall crypto market was not left behind, posting aand its market capitalization increased by 1.9%, climbing to 2.23 trillion dollars.. Trading volume, meanwhile, has surpassed $120 billion, proving that the euphoria is not about to fade. Here are some key figures:
- 46% increase in liquidations in 24 hours;
- 200 million liquidated;
- 66,000 traders liquidated.
Bitcoin: the king of cryptos leads liquidations
If Ethereum saw significant liquidations (35 million), it was Bitcoin stole the show with $75 million liquidated after a 2.9% price increase. BTC was thus flirting with $62,000, marking a decisive turning point for the “queen of cryptos”.
The largest liquidation, worth $8.9 million in the BTC-USD pairtook place on Bybit, undermining the positions of some overconfident traders.
L'global open interest' on cryptos has, despite everything, increased by 4%reaching $58.7 billion. This increase reflects the growing FOMO (fear of missing out), pushing investors to jump on the bandwagon before it is too late.
This explosive cocktail suggests further price fluctuations, with some analysts already betting on Bitcoin reaching $64,000 in the coming weeks.
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