Bitcoin Price Drops to $64,000 Amid Fed Meeting; $56M BTC Liquidations Surge
- The recent Federal Reserve meeting has had a significant impact on the cryptocurrency market.
- Market participants reacted strongly, leading to a substantial decrease in Bitcoin’s price and a wave of liquidations across the market.
- Noteworthy is the spike in Bitcoin liquidations to over $56 million within 24 hours, highlighting the volatility.
Discover the latest developments in the crypto market following the Federal Reserve’s decision to maintain interest rates. A deep dive into the events and their ramifications.
Fed Meeting Sparks Massive Bitcoin Liquidations
Following the Federal Reserve meeting on July 31, Bitcoin’s price experienced a notable drop of 3%, dwindling to $64,000. The decision by Fed Chair Jerome Powell to keep interest rates steady at 5.25-5.5% initially met market expectations but ultimately resulted in a “sell-the-news” scenario. This led to a significant increase in BTC liquidations, exceeding $56 million over the past 24 hours.
Impact on Altcoins and Market-Wide Liquidations
The ripple effect of Bitcoin’s sell-off was felt across the cryptocurrency market, with total liquidations reaching $193 million. BTC and Ethereum alone accounted for over half of these liquidations. Data from Coinglass indicates that Bitcoin long liquidations exceeded $45 million, while short liquidations were around $10.94 million. Ethereum faced $55 million in total liquidations, with long positions making up 80% of this figure. Ethereum’s price dropped by 3.3%, settling below the $3,200 mark.
Mt. Gox and Market Movements
Adding to the market turbulence, Mt. Gox has begun repaying BTC and BCH to its creditors, distributing assets to over 17,000 recipients. This news further intensified market actions and added to the overall liquidation volume.
Skepticism Over Federal Reserve’s Inflation Goals
Bitcoin critic Peter Schiff expressed doubts regarding the Federal Reserve’s future rate cut and its inflation target. Schiff suggested that Federal Reserve Chair Powell knows that reaching a 2% inflation target is unlikely, and is potentially delaying rate cuts to create a misleading sense of confidence among investors.
Altcoins Experience Significant Corrections
The altcoin segment was not spared from the correction, with Solana and XRP experiencing substantial declines. Solana’s price dropped by 6.6%, and XRP also saw significant losses. Despite the setback, XRP had a strong performance in July, rising over 30% in anticipation of a potential settlement in the Ripple SEC lawsuit.
Conclusion
The recent Federal Reserve meeting has evidently shook the cryptocurrency market, leading to major liquidations and price corrections. Bitcoin and Ethereum bore the brunt, while altcoins also faced downward pressure. With additional factors like the Mt. Gox repayments in play, the market remains highly volatile. Stakeholders and investors are advised to monitor developments closely and exercise due diligence in their trading strategies.
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