Bitcoin and numerous altcoins, along with treasuries, fell sharply in response to the Federal Reserve’s decision, as traders worried that officials would struggle to control inflation despite the possibility of a recession.
Around $129 billion of value was wiped off the cryptocurrency market in 24 hours, according to data from CoinMarketCap.
The value of ether has decreased by as much as 9%. Following the Federal Reserve’s rate hike on Wednesday, Avalanche and Solana fell as much as 15% and 11%, respectively.
A liquidation cascade appears to have occurred at the same time as the crash. In a single day, crypto liquidations totaled over $407 million, including $192 million in losses from Bitcoin. 103,889 traders have been liquidated for the day,
A drop of 11% is the biggest intraday decline since January 21 for the largest digital currency by market value.
It was a sea of red in the cryptocurrency space that has seen 103,518 traders having their accounts liquidated as Bitcoin and other cryptocurrencies sell-off, a day after the United States Federal Reserve handed down its policy decision to increase interest rate by half a percentage point.
The total liquidations from these traders amounted to a total of $403.42 million, with longs accounting for $344.52 million or 85.40% of the total liquidations. The shorts accounted for the rest of the total amount ($58.9 million).
One of the largest liquidations happened on Okex – $3.74 million.
Investors are uneasy about the prospect of stagflation, with doubts that policymakers could curb runaway prices
Fed Chair, Jerome Powell initially surprised crypto traders by rejecting a 75 basis-point hike in June.
