After the decision for a 25 basis point interest rate cut, the dollar index (DXY) fell to its lowest level in seven weeks, while precious metals surged sharply.
Silver broke records at $64 per ounce, while the 10-year Treasury yield declined from 4.20% to 4.12%. However, while the easing in monetary policy generally supports risky assets, the cryptocurrency market was unable to benefit from the positive atmosphere this time.
Immediately following the FED's decision, Bitcoin (BTC) briefly jumped above $94,000 but quickly gave back its gains, falling below $90,000 again. Bitcoin lost approximately 3.2% during the day, dropping to $89,525. While the largest cryptocurrency in the market showed weak performance over the last 24 hours, Ethereum (ETH) fell by 5.5%, XRP by 3.9%, and Solana (SOL) by 4.7%.
The poor atmosphere in the crypto market worsened further after Oracle's disappointing earnings report, leading to sharp sell-offs in artificial intelligence stocks. Oracle's 14% loss also pulled down giants like Nvidia, AMD, and Broadcom; the Nasdaq index opened down 1.2%.
Bitcoin mining companies have also come under severe selling pressure. Companies like Hut 8, Iren, Cipher, and Riot Platforms, which have turned towards artificial intelligence infrastructure, have lost between 5-6%. Strategy (MSTR), known for its Bitcoin-focused treasury strategy, decreased by 6.4%, Coinbase by 5%, and Robinhood fell by 8.3% due to the weak crypto trading volume in November.
Market data shows that Bitcoin has been trading at an average level of $89,500 during the day, while Ethereum has dropped to the $3,160 band. The weak performance of large coins indicates that despite a slight increase in volumes, the selling pressure is stronger. In the last 24 hours, XRP fell to $1.99, BNB to $864, and Dogecoin to $0.13, while Cardano became one of the weakest majors with a drop exceeding 11%.
An important indicator of the price stress experienced by the crypto ecosystem in the last 24 hours has been the liquidation data. A total of $531.3 million in positions were liquidated within 24 hours, with $403.19 million coming from long positions and $128.11 million from short positions. This data reveals that leveraged long positions have been heavily penalized in the last day. In the short term, pressure continues: $95.6 million in the last 12 hours, $62.5 million in 4 hours, and just $11.3 million in the last hour were liquidated. The dominance of long positions during these periods indicates that bullish leveraged trades are being quickly cleared.
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