$300 million liquidated from crypto market in one hour as Fed Chair delivers FOMC speech
Key Takeaways
- Over $300 million was liquidated in the crypto markets due to volatility triggered by the Federal Reserve Chair's FOMC speech.
- Lower interest rates may push investment into cryptocurrencies and other alternative assets.
The crypto market faced $300 million in liquidations in the past hour as Federal Reserve Chair Jerome Powell delivered remarks during the Federal Open Market Committee speech, triggering immediate volatility across digital assets.
The liquidations reflect heightened market sensitivity to central bank communications, as traders respond rapidly to policy signals from the Federal Reserve’s policy-making body.
The Fed on Wednesday decided to reduce the federal funds rate by 25 basis points to between 4% and 3.75%. The rate cut, decided by a 10-2 vote, aims to address slow job gains and a slight increase in the unemployment rate.
Lower interest rates could drive investments towards cryptocurrencies and other alternative assets. However, the extended US government shutdown could still complicate the crypto outlook by causing regulatory delays and increasing investor uncertainty.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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