FOMC Spooks Crypto: $400 Million Liquidated In Frantic Sell-Off
The Federal Open Market Committee (FOMC) decided to keep interest rates steady at their current range of 5.25% to 5.5% during its fourth policy meeting of the year on June 12. This decision triggered a sharp reaction in the crypto world, with Bitcoin's price dropping from $70,000 to $66,000 and Ethereum experiencing a similar downturn. The FOMC's reluctance to cut rates led to nearly $400 million in liquidations and shook investor confidence. Federal Reserve Chair Jerome Powell emphasized that the central bank is not ready to ease its tight monetary policy, underscoring the Fed's commitment to its 2% inflation target. The FOMC's decision had an immediate impact on the crypto markets, with Bitcoin dropping to $67,220 and Ethereum dropping to $3,400. Altcoins like Cardano, Solana, and Ripple each suffered declines of at least 8%. US spot Bitcoin ETFs recorded net outflows of $200 million, breaking a 19-day streak of net inflows. Despite a brief moment of optimism following the release of the US Consumer Price Index (CPI) report, the crypto market quickly reverted to its initial levels. A survey backed by Grayscale reveals that 41% of voters are paying more attention to Bitcoin due to the country's persistent inflation.
