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Bitcoin Suddenly Plunges – Here’s the Possible Reason

source-logo  en.bitcoinsistemi.com 12 June 2024 21:13, UTC

Bitcoin, the world's largest cryptocurrency, experienced a huge decline of approximately 3% after the FED's decision to keep interest rates constant today.

Although it was already seen as certain by almost everyone that the FED would keep interest rates constant, the main factor in the decline was the dot plot published by the institution and the hawkish evaluation of FED President Jerome Powell's statements.

While the previous dot plot predicted a total of three interest rate cuts in 2024, only one 25 basis point interest rate cut was predicted in the updated version published today.

In his statement, Powell emphasized that inflation rates were still high and did not include dovish statements regarding interest rate cuts, fueling the decline in Bitcoin.

Graph showing the decline in BTC price since 21:00 when the interest rate decision was announced.

While the Bitcoin price was traded at approximately $69,800 before the interest rate decision, it was around $67,500 at the time of writing this article.

With the decline, a total of $147 million was liquidated from the cryptocurrency market in the last 12 hours. The majority of liquidations were in long positions with $83 million.

Among the most liquidated cryptocurrencies, Bitcoin was the leader, followed by Ethereum.

*This is not investment advice.