Cryptocurrency market lost $ 800 million per day amid bitcoin’s fall

On the night of December 19, 2024, the price of bitcoin BTC $79,602.50 Bitcoin -1.59% Market capitalization $1.6 trillion VOL. 24 hours $1.45 billion temporarily fell below $ 99,000 after the Federal Reserve decided to cut interest rates by 0.25%. Later, the main cryptocurrency recovered and is currently trading above $ 101,000. In the digital asset market, this decision triggered liquidations of futures contracts worth about $ 800 million per day.

The positions of 269,784 traders were liquidated, of which $ 659 million were long positions and more than $ 123 million were short positions. Among the crypto assets, Bitcoin, Ethereum ETH $2,452.45 Ethereum -2.24% Market capitalization $299.24 billion VOL. 24 hours $0.97 billion , and altcoins recorded the largest losses, with liquidations amounting to $ 198 million, $ 144 million, and $ 125 million, respectively.

Bitcoin’s dominance in the market increased to 58.76%, although the asset’s capitalization temporarily dropped below $ 2 trillion. Among the top 10 cryptocurrencies by capitalization, XRP showed the largest drop, with its price falling by 6.75%.

The interest rate cut affected not only the crypto market but also the stock market. The S&P 500 index, which reflects the dynamics of shares of the largest US companies, lost about 3%. According to Bloomberg, this is the biggest drop on the day of the interest rate announcement since 2001.