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The cryptocurrency market is currently experiencing a significant decline, losing approximately 10% in the last 24 hours following the latest policy announcement from the Federal Reserve.
Bitcoin’s value fell by nearly 10%, reaching a low of $93,000. This represents a notable decline from its recent peak of $108,268 earlier this week.
This decrease brings Bitcoin to its lowest point since mid-November, when it was benefiting from a bullish trend driven by market optimism after Donald Trump’s election victory.
Ethereum experienced an even steeper decline, dropping nearly 15% to $3,100—its lowest level since late November.
Binance Coin (BNB), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) also reported double-digit declines, with data indicating losses surpassing 10%.
Market analysts link this widespread sell-off to the Federal Reserve’s more stringent approach to monetary policy. While the Fed made anticipated changes to borrowing rates, it lowered its forecast for rate cuts in 2025 from four to only two. This hawkish perspective has intensified pressure on an already vulnerable market.
Furthermore, the Federal Reserve made it clear that it has no intentions of endorsing any proposed government Bitcoin reserve strategy, which has further weakened market sentiment.
Markus Thielen, the head of research at 10x Research, stated that Bitcoin’s current price point acts as a crucial indicator for risk management. He emphasized that the Fed’s resolute policy stance and potential liquidity changes expected from the US Treasury in 2025 have heightened market uncertainty.
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Liquidation frenzy hits the market.
Data from CoinGlass reveals that the recent market volatility resulted in over $1.2 billion in liquidations, affecting 377,618 traders.
Long traders—those anticipating price increases—suffered the majority of the losses, totaling approximately $1.07 billion. This represents one of the most significant setbacks for long traders this year.
Conversely, short traders betting on price declines incurred losses of $163 million during this period.
Screengrab showing liquidations across the crypto market on Dec. 20, 2024 (Source: CoinGlass)
Speculators on Bitcoin prices faced the largest losses, with $279 million liquidated, which included $227.5 million in long positions. Ethereum traders were not far behind, with $277 million in liquidations, comprising $248.7 million from long positions and $28.2 million from short positions.
Traders betting on Solana, XRP, and Dogecoin also experienced losses of $55 million, $36 million, and $80 million, respectively.
The largest single liquidation occurred on Binance, involving a $15 million ETH–USDT transaction, underscoring the severity of the market’s recent volatility.
The post Bitcoin and Ethereum take a hit as $1.2 billion in crypto liquidated appeared first on CryptoSlate.
