Bitcoin saw a significant dip to $64,600 in early Asian trading on Tuesday, leading to the liquidation of leveraged positions totaling $480 million. According to Coinglass data, over the past 24 hours, 190,144 traders were liquidated, resulting in a total of $480.93 million in liquidations, with $420 million coming from long positions.
The majority of the long positions, around $372 million, were liquidated on Binance, OKX, and HTX. At the time of writing, Bitcoin has slightly recovered and is trading above $65,700. This decline in Bitcoin also caused a downturn in altcoins, with Ethereum dropping nearly 4% in the last 24 hours, currently trading at $3,450.
Popular altcoins such as Solana (SOL), Toncoin (TON), and Cardano (ADA) have seen drops of 8%, 6%, and 8% respectively. Meme coins have also taken a hit, with Dogecoin (DOGE) trading at $0.1221, down almost 10% in the last 24 hours. Other meme coins like Shiba Inu, PEPE, Dogwifhat, and Floki are down by over 10%.
In other news, the Federal Reserve has announced that it plans to make only one rate cut in 2024. Last week, the Federal Reserve decided to keep its benchmark interest rate unchanged at 5.25% to 5.5%, the highest in 23 years, citing the need for more evidence that U.S. inflation is cooling. Despite a modest decrease in the annual rise in consumer prices for May, the Fed noted that inflation remains high, leading to their decision to make only one rate cut in 2024, down from the earlier forecast of three. Fed Chairman Jerome Powell stated that while the latest Consumer Price Index report is encouraging, more evidence is needed before loosening monetary policy.
