Bitcoin, the leading cryptocurrency fluctuated massively in the hours following the United States interest rate hike. A hawkish Fed is working hard to manage rising inflation in the largest economy in the world with bitcoin trading at just under $19K as of the time of publication.
At the time of writing, the value of the global cryptocurrency market was $907.8 billion, down by 2.01% from the previous day. A total of 90,580 traders were liquidated during the course of the day, for a total liquidation of $324.57 million.
- Liquidation is the forced closing out of all or part of the initial margin position by a trader or asset lender. Liquidation occurs when a trader lacks the funds to continue the transaction and is unable to cover the allocation of a leveraged position.
The greatest single liquidation order, worth about $2 million in BTC-USD-SWAP, occurred on Okex.
Bitcoin market’s valuation has decreased to $360 billion as a result, and its dominance over alternative coins has decreased to 39.4%.
- The Federal Reserve increased interest rates by 75 basis points (0.75 percentage point) on Wednesday, a move that was generally expected. This is the third time in a row this year that central bankers have chosen to raise rates by that amount, which has weakened the value of bitcoin.
- The federal funds rate will increase to 3% to 3.25%, which will be the highest level since late 2007. For more than two years, the rate has been close to zero. The federal funds rate is expected to rise over 4.25% before central bankers decide to halt the campaign, according to traders.
- Some economists predict that once the terminal rate is reached, which central bankers still disagree on, it will likely remain there until inflation declines noticeably, perhaps to the Fed’s goal rate of 2%. The top executives of the Federal Reserve, however, predict rate increases through 2023.
- Since the Merge last Thursday, Ethereum has been among the worst performers. Within days, the asset’s value dropped from $1.6K to $1.3K. It increased to about $1.4K yesterday but has since dropped by 2.5% to just over $1.3K