$260M Liquidated Amid Bitcoin’s Roller Coaster Prompted By Fed Rate Hike: Market Watch
Bitcoin’s price went on an expected rollercoaster ride yesterday after the US Federal Reserve chairman announced another interest rate hike.
Most altcoins are deep in the red now, with several linked to the Tron blockchain dumping hard following the SEC charges against Justin Sun.
BTC dropped $2K
The global banking crisis, which unfolded in recent weeks, pushed the primary cryptocurrency to a nine-month high above $28,000. The asset went even higher yesterday when it nearly hit $29,000. This was ahead of the second FOMC meeting of the year.
Given all that happened to the SVB and other banking organizations, many prominent figures, such as Bill Ackman and Elon Musk, suggested that the Fed should back off from its rate hike strategy. But the country’s central bank did not follow their advice and increased key interest rates by a further 25 basis points.
BTC reacted with immediate price volatility. The asset fell from its multi-month peak all the way down to $26,700 (on Bitstamp). The roller coaster continued for the following hours, but this time in the opposite direction. Naturally, this led to a large number of liquidations, with the total value of 260 million dollars on a 24-hour scale.
As of now, the cryptocurrency is once again trading near $28,000. Its market dominance has increased to 46.2%.
LTC, APT Defy the Odds
Altcoins experienced similar, if not even more enhanced, volatility following the Fed’s announcement. On a daily scale, most are in the red.
Ethereum fell below $1,800, BNB is well below $330, and similar drops are evident from Ripple, Cardano, Polkadot, Solana and others.
TRX has dumped the most from the bigger companies after the SEC went after Justin Sun. Despite his response to the allegations, other TRON-linked cryptocurrencies also fell hard.
Litecoin and Aptos are among the few examples of digital assets in the green. LTC is up 8.5%, while APT is up 5.5%.
The crypto market cap has decreased by around $30 billion to $1.16 trillion.
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