Bitcoin experienced a drop to as low as $64,600 during the early hours of Tuesday in Asia, resulting in the liquidation of leveraged positions totaling $480 million.
According to data from Coinglass, over the past 24 hours, 190,144 traders were liquidated, with a total of $480.93 million being liquidated, of which $420 million were long positions. Binance, OKX, and HTX saw around $372 million in long positions being liquidated. As of the time of writing, Bitcoin has slightly recovered and is trading above $65,700. This drop in Bitcoin also caused a decline in altcoins, with Ethereum falling by nearly 4% in the past 24 hours and currently trading at $3,450.
The entire market has turned red as popular altcoins such as Solana (SOL), Toncoin (TON), and Cardano (ADA) are down 8%, 6%, and 8% respectively. Meme coins have also seen a significant decrease, with Dogecoin (DOGE) dropping by nearly 10% in the last 24 hours, trading at $0.1221. Other meme coins like Shiba Inu, PEPE, Dogwifhat, and Floki are down by more than 10%.
In other news, the Federal Reserve has announced plans for only one rate cut in 2024. Despite keeping its benchmark interest rate unchanged at 5.25% to 5.5%, the highest in 23 years, the Fed cited the need for more evidence that U.S. inflation is cooling. Inflation remains above the Fed’s 2% target, with a 3.3% annual rise in consumer prices for May, slightly down from April’s 3.4%. Fed Chairman Jerome Powell stated that while the latest Consumer Price Index report is encouraging, more evidence is needed before loosening monetary policy.