After the speech by J. Powell, the president of the Fed, the price of Bitcoin briefly fell below $100,000 before recovering. Unfortunately, it looks like the decline is not over, as Bitcoin and cryptocurrencies are falling again after the US markets opened.
- J. Powell’s speech caused a dramatic fall in Bitcoin and cryptocurrencies, sowing doubt among investors.
- Massive liquidations reached $825 million, mainly among long traders, raising the specter of a potential post-Inauguration Day correction.
Blood red for Bitcoin and cryptocurrencies
The Fed Chairman’s speech sowed doubt among investorsbecause he clearly expressed the fact that there could be only two rate cuts in 2025. Already the altcoins were far from the usual bull market performancesall sectors show red over the last 24 hours :
This is the sector of memecoins which is the most affected with a drop of around 10%but the other altcoins are not doing much better. The Bitcoin declines by 3% in 24 hoursand this seems to be a disaster on the altcoin side.
Crypto traders get liquidated after BTC decline
Unsurprisingly, but despite slight decrease on the price of Bitcoin, traders get liquidated. In total, the market records no less than $825 million in liquidations over the last 24 hours:
The vast majority of liquidations comes from long operators (buyers). Although these amounts appear to be significant, they remain much lower than December 9. In fact, there had been 1.2 billion dollars in liquidations during this day.
The market is clearly surprised by the Fed on rates, and the surprises may not stop there. Indeed, according to Arthur Hayes, Bitcoin and cryptocurrencies could experience a correction after theInauguration Day.
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