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FEDERAL OPEN MARKET COMMITTEE
Bitcoin the flagship crypto asset dropped below its psychological barrier of $100,000 following Fed cut rates announced by the Federal Open Market Committee yesterday.
On Wednesday, the U.S. Federal Reserve implemented a 0.5% cut to its interest rates, marking the start of what many analysts anticipate will be a sustained phase of monetary easing.
Bitcoin, the primary crypto asset, witnessed a significant dip in price which affected other crypto assets and resulted in the liquidation of $420 million worth of long positions by crypto traders.
The crypto industry lost $400 million to liquidation in two days following an important policy meeting the Federal Open Market Committee (FOMC) held yesterday, which sparked frantic sell-offs.
Following the May policy meeting, some Federal Open Market Committee (FOMC) members broke the blackout period to express their views on rate hikes.
Gold futures on New York’s Comex settled at $1,769 per ounce on Friday, after declining 0.3 for the day.
As the sell-off intensified as a result of the FOMC report, the NetFlow of BTC into exchanges saw noticeable selling pressure, which kept Bitcoin pinned below $36,000.