The US Federal Reserve (Fed) announced a 25 basis point interest rate cut on Wednesday. $101,762.8 and caused a serious fluctuation in the crypto market. After this statement, the Bitcoin price fell below the critical support level of $ 100 thousand. The selling pressure resulted from the market’s reaction to the limited interest rate cuts predicted by the Fed for 2025 and beyond.
$860 Million Liquidation in the Crypto Market
The decline in Bitcoin, Ethereum (ETH) 
$3,677.8Dogecoin 
$0.360902 It also triggered losses of up to 10% in altcoins such as (DOGE), XRP and Solana (SOL). This situation led to the liquidation of a total position of 860 million dollars. Blockchain analysis platform Santiment pointed out that Bitcoin showed a more resilient performance compared to the S&P 500 index.
Fed Chairman Jerome Powell stated in his statement that only two interest rate cuts are planned in 2025. This decision fell short of meeting the expectations of the markets and caused the sales wave to deepen. On the other hand, analyst Alex Kruger, in his post on Twitter, emphasized that Bitcoin could find support at the $ 98,000 level and that the euphoria in the crypto market has decreased significantly.
There Have Been Extensive Declines in Altcoins
Losses in altcoins have been steeper than Bitcoin. Ethereum has partially recovered, managing to stay above the critical $3,550 level. However, XRP price is testing the critical support level by falling to $2.25. Analyst IncomeSharks stated that Ethereum’s Supertrend indicator is still giving an upward signal, and if XRP cannot maintain this level, it may lose more value.
Meanwhile, the Bank of Japan kept the policy rate constant, causing the yen to lose value against the dollar. Additionally, BlackRock’s IBIT Bitcoin ETF continued inflows, while other ETFs saw net outflows. BlackRock ETF broke even with inflows of $356 million despite the negative impact on the market.
The Altcoin Season Index dropped to the level of 55, bringing with it comments that the simultaneous weakening in most altcoins indicated that the end of the altcoin season was approaching. Volatility in the crypto market forces market players to be more careful.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
