Cryptocurrencies face wave of liquidations after Fed announcement

The cryptocurrency market is reeling under the weight of cautious statements from Jerome Powell, the chairman of the Federal Reserve. While investors are hopeful for encouraging signs, Powell has reaffirmed his strict stance on interest rates, pushing Bitcoin and altcoins into a downward spiral. A wave of liquidations followed, indicating increased anxiety over macroeconomic uncertainties. The cryptocurrency market is under pressure: Bitcoin and altcoins are plummeting uncontrollably. Powell's remarks came as an electric shock to the cryptocurrency market. Bitcoin, often considered a safe haven, lost more than 2% in 24 hours, dropping to $95,000. Altcoins did not escape either: Ethereum (-3.76%), XRP and Solana (-4.78%) also followed this trend. Even memecoins like Dogecoin, Shiba Inu, and PEPE are suffering significant losses. This widespread selling pressure is accompanied by an increase in trading volume, up 8% to $105.57 billion. A clear contradiction highlights the intensity of capital movements. The liquidation in the cryptocurrency market is significant: $44 million for Bitcoin, $30.23 million for Ethereum, and $6.05 million for XRP. Investors are clearly worried, preparing for a prolonged tightening of monetary policy. High interest rates make risky assets less appealing and cryptocurrencies, at the forefront, are paying the price. Macroeconomic instability: further indicators to monitor Powell's statements are just the tip of the iceberg. Investors are now scrutinizing upcoming economic data, especially the (CPI) consumer price index and the (PPI) producer price index. These indicators can confirm inflation worries or provide some relief to the market. In this context, some cryptocurrencies are holding up better than others. Still, the Fed's shadow looms. Powell has made it clear that restrictive monetary policy will remain in place until inflation is under control. A view that puts great pressure on risky assets, including cryptocurrencies. The wave of liquidations hitting the cryptocurrency market is a devastating reminder of how sensitive this market is to macroeconomic decisions. Powell's statements have heightened fears, but they also highlight the relative resilience of certain projects. In the short term, everything will depend on the next economic data. Falling inflation may stoke hope, while stagnation or rising conditions will prolong uncertainty. Read more, miner's alarm.