The cryptocurrency market continued to experience a strong day of turmoil as red covered most major assets, as expectations of a rate cut by the US Federal Reserve (Fed) in December continued to weaken. In the past 24 hours, the total market Capital has decreased by about 4.5%, falling back to approximately $3.05 trillion. Bitcoin - the leading currency - slipped to the $87,000 region after many unsuccessful attempts to maintain its price, while Ethereum was also pulled down to around $2,800, reflecting the cautious sentiment spreading across the market. Most altcoins plunged, from large Capital Token to "hot" projects in the Solana, Base and BNB Chain ecosystems.
The intense selling pressure has caused liquidation volumes in the Derivative market to skyrocket. In the past 12 hours alone, the total value of forced liquidations has exceeded $736 million, of which nearly 90% came from investors holding Longing positions – those expecting prices to rise. The sudden market reversal has wiped out many highly leveraged positions, especially on BTC Futures Contract and volatile altcoins.
In addition to investors reducing expectations for the Fed to cut interest rates in December, information that Strategy Inc – the company leading the wave of buying Bitcoin reserves – is at risk of being removed from major stock indexes such as MSCI USA and Nasdaq 100 also makes cryptocurrency investors concerned.
