The markets crashed: Liquidations in the cryptocurrency markets exceeded a billion dollars.

After the 25 basis point interest rate cut by the Federal Reserve, Fed Chairman Powell's clear stance on Bitcoin created a seismic effect in the crypto markets. Liquidations exceeding a billion dollars rapidly declined critical assets like Ethereum and Bitcoin. Sharp declines were observed not only in the crypto markets but also in the US stock markets.

Fed Chairman Powell's Statements Hit Crypto Markets and Stock Exchanges

The decision announced by the Federal Reserve (Fed) yesterday to cut interest rates by 25 basis points shocked the markets. Especially during the press conference, Fed Chairman Jerome Powell's clear position on Bitcoin caused severe fluctuations in the cryptocurrency markets. When asked about the inclusion of Bitcoin in the US's strategic reserves, Powell responded, "We are not allowed to hold Bitcoin," and firmly stated that they are not seeking any legal regulation on this matter.

Following these statements, the turmoil in the cryptocurrency markets led to massive liquidation transactions. According to Coinglass data, a total of $1.05 billion in liquidations occurred in the last 24 hours. Of this amount, $906.65 million came from long positions, while $141.04 million came from short positions. The Binance platform stood out with a liquidation volume of $441.18 million, of which $376.66 million came from long positions and $64.51 million from short positions.

The cryptocurrency most affected by the market turbulence was Ethereum (ETH). ETH experienced a liquidation of $61.99 million, followed by Bitcoin with $32.22 million and Dogecoin with $13.38 million. The largest single liquidation transaction was recorded at Bitmex in the ETH/USD pair, amounting to $11.13 million.

The turbulence in the markets intensified in the last hours. In the last hour alone, additional liquidations exceeding $200 million occurred, and sharp declines were observed in the values of leading cryptocurrencies. Bitcoin fell by 2.90% in the last 24 hours to $97,241.44, while Ethereum dropped to $3,432.28 with a decrease of 5.33%. Ripple was traded at $2.2297, losing 3.29% of its value.

This turmoil in the crypto markets also reflected on US stock markets. The S&P 500 index lost nearly 3% of its value, while the Russell 2000 index declined by over 4%. The Dow Jones Industrial Average experienced the longest losing streak since 1974, closing the tenth consecutive day with a loss.

Powell's statements triggered concerns that the number of expected interest rate cuts for 2025 could decrease. The Fed's upward revision of growth forecasts and cautious stance raised long-term interest rates. This situation also hindered the anticipated stock rally after the elections.

Experts noted that inflation concerns have resurfaced in light of the Fed's increasing cautiousness, and interest rate cuts may occur less frequently than expected. Market participants are closely monitoring upcoming economic data and the Fed's messages, with expectations that fluctuations may continue.