Bitcoin’s price declined sharply following the latest Federal Open Market Committee meeting and a hawkish press conference by new Federal Reserve Chair Kevin Warsh. The cryptocurrency dropped from over $66,000 to around $64,000, with significant liquidations in the market totaling over $400 million. Investors reacted to the Fed’s maintained interest rates and Warsh’s focus on price stability.
Bitcoin’s price declined significantly after the latest FOMC meeting concluded. The asset was rejected above $66,000 and fell to $64,000 shortly after the press conference by new Fed Chair Kevin Warsh.
Warsh maintained a surprisingly hawkish tone during his speech. This contrasted with earlier investor expectations for a more accommodating policy.
DoubleLine Capital CEO Jeffrey Gundlach noted the shift in an interview. “He is absolutely telling you that he plans on delivering on price stability. So that means we’re not going to have such easy money policy as everybody thought maybe Chairman Warsh would do,” he stated.
The speech followed the US Federal Reserve maintaining interest rates unchanged for a fourth consecutive meeting. Bitcoin’s price had already dipped after the initial decision before falling further.
Most major altcoins followed Bitcoin lower. Ethereum dropped below $1,740, while BNB lost the $600 support level.
Data from CoinGlass shows the total value of liquidated positions in the past 24 hours exceeded $400 million. Nearly 100,000 traders were affected, with long positions accounting for $280 million of the losses.
The largest single liquidated position was valued at $5 million and occurred on Binance. This highlights the intense market volatility within a short period.
