Over $160M Liquidated In Crypto After Fed Keeps Interest Rates Unchanged

Over $160 million in cryptocurrency futures were liquidated, following the latest monetary policy decision from the Federal Reserve. 

What Happened: The U.S. central bank maintained its key interest rate for the third consecutive time, signaling potential rate cuts in the coming years, starting from 2024 onwards.

The Federal Open Market Committee reached a consensus to hold the benchmark overnight interest rate steady within the 5.25% to 5.5% range as inflation shows signs of subsidence while the economy remains stable.

Tracking the effects on the crypto market, data from CoinGlass indicated that over 56,202 traders were caught in a sweep that saw a total of $159.19 million in liquidations. The largest single liquidation order occurred on the Bitmex platform with the LINK-USD pair, valued at a substantial $16.84 million.

Further dissecting the liquidation data, long positions bore a loss of $69.51 million, while short positions were higher, at $89.44 million.

In the aftermath of the FOMC’s announcement, Bitcoin BTC/USD showed recovery, breaching the $43,000 mark. This rebound is noteworthy as it represents a recovery from Monday’s flash crash, providing a lift to the broader cryptocurrency market.

Bitcoin short sellers, in particular, felt the sting as over $33 million worth of BTC shorts were liquidated over the same 24-hour period.

See More: Dogecoin HODLERs Are Beating Shiba Inu With 57% Landing In Profits, IntoTheBlock Data Reveals

Why It Matters: Data from LunarCrush, a social media analytics firm, highlighted a surge in Bitcoin’s social media presence following the Fed’s decision. Bitcoin’s Social Dominance spiked by 11.2%, coupled with a 24.63% increase in Social Interactions.

Price Action: At the time of writing, BTC was trading at $42,784, up 5% in the last 24 hours according to Benzinga Pro.

Photo by Avi Rozen on Shutterstock

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