The cryptocurrency market has experienced a significant downturn in recent hours, with Bitcoin (BTC) seeing a 1.79% decrease and trading at $101,766. The digital currency is currently struggling to maintain its position above the crucial $2 trillion market capitalization threshold.
The 24-hour trading volume for the cryptocurrency market reached $59.8 billion. During this period, over $631 million worth of positions were liquidated across the entire market.
Factors Driving the Decline
The primary driver behind the current market decline is the increasing probability that the Federal Reserve (Fed) will maintain its current interest rates steady in December. This anticipation has led to a wave of liquidations, which has, in turn, exacerbated the price drop.
Current prediction markets indicate a 27% chance that the Fed will decide against cutting interest rates.
Liquidation Analysis
Over the past 24 hours, the majority of liquidations have affected long positions. A total of $631 million in positions were liquidated, with $526 million of that amount stemming from long positions.
The last hour alone saw significant liquidation activity, with $256 million worth of positions being liquidated.
Top Liquidated Cryptocurrencies (Last 24 Hours)
- •Bitcoin: $166.85 million
- •Ethereum: $163.97 million
- •Popcat: $63.08 million
- •Solana: $33.8 million
Impact on Major Cryptocurrencies
In tandem with Bitcoin's decline, other major cryptocurrencies have also seen a downturn. Ethereum has fallen by 2.27%, Solana by 2.92%, and BNB by 2.23%.
