After the FED decided to keep interest rates constant in line with expectations, the effects of this decision are also felt in the cryptocurrency market.
Although the FED made a move in line with expectations, the “dot plot” published along with the interest rate decision and representing estimates of how much interest rate cuts will be made this year, took a surprisingly hawkish stance.
According to the dot plot, the FED plans to cut interest rates only once in 2024, expected at a low rate of 25 basis points.
Following these hawkish statements, a general downward trend was observed in the cryptocurrency market. While Bitcoin lost approximately 0.75% in value, it seems to be recovering at the time of writing and is trading at $69,400.
On the altcoin side, Ethereum decreased by approximately 0.60% after the decision. While losses in Solana appeared to be around 0.70%, BNB lost approximately 1% in value.
On the other hand, the total market capitalization of “other”, calculated by excluding the world's 10 largest altcoins, decreased by approximately 0.8%.
On the liquidation side, a different picture was observed. In the last hour, a liquidation occurred in the cryptocurrency market, indicating low volatility of $ 21 million. $16 million of the liquidations were in long positions.
Interestingly, the most liquidation occurred in Ethereum, not Bitcoin.
