A crypto crash is happening today, with Bitcoin and most altcoins falling by double digits despite some positive news this week.
Cardano price plunged to $0.60, down sharply from the August high of $1.019. It is now hovering near its lowest level since July 8.
SUI’s price also plunged to $2.30, well below its August high of $4.43, while Pepe Coin has moved from $0.00001627 to $0.0000065. XRP has also dropped below $2.5.
Why the Crypto Crash is Happening After Fed Cut
These tokens crashed despite some important crypto news this week. One of the most important developments was the Securities and Exchange Commission (SEC) approving some altcoin ETFs, including those tracking tokens like Hedera (HBAR), Solana (SOL), and Litecoin. This approval means the other pending tokens will mostly be approved soon
The crypto crash also occurred after Donald Trump met with Xi Jinping at the APEC Summit on Thursday, reaching key deals and reducing tensions that had been escalating over the past few months.
One reason for the ongoing crypto market crash is that the Federal Reserve delivered a more hawkish interest rate decision than most analysts were expecting. It slashed interest rates by 0.25% and maintained its concerns about inflation.
As a result, officials warned that a December interest rate cut was not guaranteed as some analysts had expected.
Also, cryptocurrencies plunged after the Fed decision as investors sold the news, even though most tokens were up by double digits before the decision.
Buying the rumor and selling the news is a common occurrence in the stock and crypto markets. This also explains why the stock market declined on Thursday after the Fed decision.
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Liquidations Jump, Open Interest Plunges
The crypto market crash is also happening as liquidations continue rising, wiping out thousands of traders. Data compiled by CoinGlass shows that liquidations jumped by 78% in the last 24 hours to $1.1 billion.
The ongoing surge in liquidations brings back memories of the wipeout on October 11, when the crypto market plunged following Trump’s warning of more tariffs on China.
There are also signs that traders, fearing liquidations, are winding down their leveraged positions, lowering the futures open interest to $150 million.
The crypto market crash is also underway, as Bitcoin’s price has formed a death cross, pointing to further downside in the near term. This pattern occurs when the 50-day and 200-day moving averages cross, and it is one of the most popular bearish patterns in the crypto industry.
READ MORE: XRP Price Prediction After Fed Interest Rate Cut: Buy the Dip?
