- More than $800M was liquidated from the crypto market within 24 hours as Bitcoin and most altcoins plunged.
- The dip was influenced by several macro-economic factors and volatility across the U.S. stock market.
The cryptocurrency market traded lower on the 27th of January, with Bitcoin [BTC] dropping below $100,000 to trade at $98,543 at press time.
The top two altcoins, Ethereum [ETH] and Ripple [XRP], were also down by 8% and 10%, respectively.
The downtrend triggered massive liquidations of over $800M per Coinglass, which affected more than 316,000 traders.
This bearish trend coincided with several macroeconomic factors that appeared to trigger panic over upcoming price volatility.
FOMC meeting on interest rates
The Federal Open Market Committee (FOMC) is expected to hold its first meeting of the year on the 29th of January.
During the meeting, the Federal Reserve will make an interest rate decision that could stir volatility across financial markets.
Data from the CME FedWatch Tool showed that 99.5% of investors anticipated that interest rates could remain unchanged at 4.25% to 4.5%, suggesting that inflation is still a concern.
Source: CME FedWatch Tool
FOMC meetings tend to affect crypto prices, as interest rate decisions could influence whether investors invest
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Author: Muthoni Mary
