The crypto market surprisingly reacted positively to the recent interest rate hike from the US Fed, with prices soaring to new weekly highs. As such, the number of liquidated traders on a daily scale has increased. 90,000, while the total value of liquidations is $400 million. And BTC soared by almost $2,000 in a day!
The major cryptocurrency had retraced from last week’s high and stood around $21,000 after dropping below that level briefly. The altcoins were calm after the recent losses, with ETH dropping by over $200 in two days.
The market had diligently awaited yesterday’s FOMC meeting, where some experts suggested that the Federal Reserve could be more aggressive in its interest rate increase; it turns out they were right.
The Fed hiked the rates by 75 basis points and said it would continue to increase them throughout the year to fight inflation. The next FOMC meeting is scheduled for late September.
As usual, the Fed’s announcement unsettled the crypto market, however, in terms of a rapid price increase.
Bitcoin surged to $22,000 almost immediately and tapped a six-day high of over $23,000 hours later. Despite retracing slightly since that local peak, the cryptocurrency is still 9% up today.
The altcoins also experienced significant gains. ETH is 14% higher than yesterday, and more price pumps are evident from Solana, Polkadot, MATIC, and others.
As a result, the total liquidations are up to $400 million daily. The number of affected traders sits above 90,000, and the single-largest liquidation order involving the ETH-USD trading pair on Huobi is worth more than $2 million.
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