Following the Federal Reserve’s 25 basis point interest rate cut decision yesterday, the dollar index (DXY) fell to its lowest level in seven weeks, while precious metals rose sharply.
Silver hit a record high of $64 per ounce, while the 10-year Treasury yield fell from 4.20% to 4.12%. However, although monetary easing generally supports risky assets, the cryptocurrency market failed to benefit from the positive atmosphere this time.
Bitcoin (BTC), which briefly jumped above $94,000 immediately after the Fed’s decision, quickly gave back its gains and fell back below $90,000. Bitcoin lost approximately 3.2% of its value during the day, dropping to $89,525. The largest cryptocurrency in the market has shown weak performance in the last 24 hours, while Ethereum (ETH) fell by 5.5%, XRP by 3.9%, and Solana (SOL) by 4.7%.
The pessimism in the crypto market worsened further with sharp sell-offs in AI stocks following Oracle’s disappointing earnings report. Oracle’s 14% drop dragged down giants like Nvidia, AMD, and Broadcom; the Nasdaq index opened 1.2% lower.
Bitcoin mining companies also came under heavy selling pressure. Companies focusing on AI infrastructure, such as Hut 8, Iren, Cipher, and Riot Platforms, lost between 5% and 6% of their value. Strategy (MSTR), known for its Bitcoin-focused treasury strategy, fell by 6.4%, Coinbase by 5%, and Robinhood by 8.3% due to weak crypto trading volume in November.
Market data shows Bitcoin trading around $89,500 during the day, while Ethereum has fallen to the $3,160 range. The weak performance of major coins indicates stronger selling pressure despite a slight increase in volume. In the last 24 hours, XRP dropped to $1.99, BNB to $864, and Dogecoin to $0.13, while Cardano was one of the weakest majors with a drop exceeding 11%.
A significant indicator of the price stress experienced by the crypto ecosystem in the last 24 hours is the liquidation data. A total of $531.3 million in positions were liquidated in 24 hours, with $403.19 million coming from long positions and $128.11 million from short positions. This shows that leveraged long positions were heavily penalized in the last day. The pressure continues in the short term: $95.6 million in liquidations occurred in the last 12 hours, $62.5 million in the last 4 hours, and $11.3 million in the last hour alone. The fact that the majority of liquidations were in long positions during these periods indicates that bullish leveraged trades are being rapidly cleared.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/bitcoin-price-plummets-today-heres-why-and-what-you-need-to-know/