- Bitcoin dropped to $97K while Ethereum trades at the $3,300 price level.
- The Fed’s hawkish FOMC has triggered the massive crypto sell-off.
- “Over bullish positioning” by investors is another reason for the crash.
The crypto market had a massive crash, with Bitcoin (BTC) dropping below $100,000 even after several attempts to keep the price above $103,000 in the past few days. Ethereum (ETH) also plummeted to $3,300, a support level, after a 7.2% price crash in the past 24 hours.
CoinMarketCap data shows Bitcoin’s dominance increased to 57.4%, while the Fear and Greed Index dropped to 62. BTC’s rising dominance indicates that the digital asset space did not have an altcoin season as the industry’s total market capitalization dropped to $3.35 trillion.
The Fed’s Announcement and Market Reaction
The hawkish FOMC announcement from the United States Fed triggered a sharp selloff across all risk assets, with Nasdaq falling 3.56%, S&P 500 dropping 2.95%, and BTC dropping 6.13%, as noted by Singapore-based digital asset firm QCP Capital. The Fed now projects two rate cuts for 2025 instead of the market’s consensus of three because of persistent inflation.
Although the Fed’s announcement is partly responsible, QCP Capital believes that the “overly bullish positioning” in the market also caused the rapid price decline. The crash might be a correctional phase for the crypto market, which could create buying opportunities.
Altcoins Crashing
CoinMarketCap data shows that in the past 24 hours, Solana (SOL) dipped a significant 6.64%, losing the $200 price level; Dogecoin crashed 11.80%, trading at $0.3196; Cardano (ADA) slipped 8.36%, priced at $0.8982; Avalanche (AVAX) plummeted 8.18% to $39.24; and Shiba Inu (SHIB) dropped 9.25% to $0.00002201.
Read also: 2024 Bull Cycle Highlights: ONDO, SOL, and SUI Spark Altcoin Investor Revival
Other leading altcoins with substantial valuations also fell, with Uniswap (UNI) dropping 11.05% to $12.94; Near Protocol (NEAR) crashing 9.28% to $5.25, Ethereum Classic (ETC) plunging 8.18% to $26.99; and Filecoin (FIL) nosediving 8.15% to 5.17.
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