Nearly $1.25 billion has been liquidated from the crypto market over the past 24 hours, as the market’s nearly down 10%. 

Bitcoin dipped below $96,000, with meme coins seeing the highest loss on Thursday. 

Inflation Forecast Triggers Massive Corrections in the Crypto Market

According to Coinglass data, Bitcoin saw over $45 million in liquidation today, while Ethereum saw nearly $30 million. This major correction occurred after the Federal Reserve cut interest rates by 25 basis points on Wednesday.

Usually, an interest rate cut is bullish for crypto, as lower rates signal a softer monetary policy. However, what impacted the market was the Fed’s 2025 projections. Jerome Powell said that the Federal Reserve is predicting higher inflation and only two interest rate cuts next year. 

While this level of liquidation is significant, the impact on the stock market is more severe. Nearly $1.5 trillion was wiped out from the US market. These heavy liquidations are driving concerns for a potential bearish cycle.

“Hey guys, now that the bull market’s officially over I just wanted to extend a wholehearted thank you to everyone. I’ll be deleting all crypto related socials and logging off,” one influencer posted on X (formerly Twitter)

However, the prevailing perspective of most analysts seems to indicate that today’s liquidation is just a short-term flushout.

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Author: Mohammad Shahid