Statements made by Fed Chairman Jerome Powell regarding interest rate cut expectations in the United States next year led to declines in global crypto asset prices. General market sales, which started on Wednesday, accelerated today.
Bitcoin and Altcoin Decline
Although Bitcoin made an effort to bounce back above $100,000, it fell rapidly during the day. Bitcoin (BTC) after accelerating sales in the last few hours $101,762.8 Its price dropped to $95,700.
Ethereum (ETH) 
$3,677.8 While Cardano fell 10.8% to below $3,500 
$0.974359‘s ADA, Chainlink 
$24.9‘s LINK, Aptos’ APT, Avalanche 
$42.6‘s AVAX and Dogecoin 
$0.360902There were losses between 15-20% in DOGE. SOL, on the other hand, saw a loss of approximately 26%, falling to its lowest levels since November 7.
Following the interest rate decision taken by Fed policy makers yesterday, the leveraged position worth approximately $1.2 billion was liquidated. Of course, most of the liquidations were in long positions opened with bullish expectations.
“The crypto market was already on edge about the possibility of a correction after Bitcoin’s record high above $100,000. We took this catalyst from the world of traditional markets. “The effects of the Fed decision on Wednesday were too great to ignore.” – Joel Kruger, market strategist at LMAX Group
Situation in Traditional Markets
In traditional markets, U.S. stock indexes rebounded slightly from Wednesday’s declines but gave back some of their premarket gains during the session. The S&P 500 and the tech-heavy Nasdaq were up 0.5% from Wednesday’s close.
“When you consider annual growth, this kind of pullback looks healthy. “It is also worth noting that year-end sales may occur as investors offset losses with gains to reduce their tax liability.” – Azeem Khan, co-founder and COO of Morph
The US dollar index (DXY) rose above 108, its strongest level since November 2022, as a gauge of strength against a basket of foreign currencies. Additionally, 10-year U.S. Treasury yields have also risen sharply to above 4.6%, the highest levels since May.
The recent rise in crypto prices after Donald Trump’s presidential election victory in early November was supported by the expectation that his administration would introduce pro-crypto policies. However, the Fed’s projection that the rate of interest rate cuts would slow down and Powell’s harsh speeches on rising inflation expectations misled investors and caused widespread sales.
In light of these developments, it is important for investors to carefully follow market fluctuations and potential withdrawals.
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.
