Bitcoin Dips to $64,600 Causing $420 Million in Long Liquidations

In a turbulent 24 hours for the cryptocurrency market, Bitcoin’s price dipped as low as $64,600 during early Asian trading hours on Tuesday, leading to massive liquidations. According to Coinglass data, 190,144 traders were liquidated, totaling $480.93 million, with $420 million of that in long positions.

Major exchanges such as Binance, OKX, and HTX saw around $372 million in long positions liquidated. At the time of writing, Bitcoin has recovered slightly, trading above $65,700. This drop triggered a broader market decline, affecting altcoins and meme coins significantly.

Altcoins Bleed as Entire Market Turns Red

The price slide in Bitcoin caused a ripple effect across the cryptocurrency market. Ethereum dropped nearly 4%, currently trading at $3,450. Other popular altcoins like Solana (SOL), Toncoin (TON), and Cardano (ADA) saw declines of 8%, 6%, and 8% respectively.

Meme coins suffered even more severe losses. Dogecoin (DOGE) plummeted nearly 10%, now trading at $0.1221, while Shiba Inu, PEPE, Dogwifhat, and Floki all dropped by over 10% in the past 24 hours.

Federal Reserve Plans Only One Rate Cut in 2024

In related financial news, the Federal Reserve has announced plans for only one rate cut in 2024, down from an earlier forecast of three. This decision follows last week’s announcement that the Fed’s benchmark interest rate will remain unchanged at 5.25% to 5.5%, the highest in 23 years.

Despite some easing, inflation remains above the Fed’s 2% target, with consumer prices rising 3.3% annually in May, slightly down from April’s 3.4%. Fed Chairman Jerome Powell noted the need for more evidence of cooling inflation before easing monetary policy.