Over 130,000 Liquidated. Fed Rate Cut Expectations Fall Through, Cryptocurrencies Slump En Masse

TradingKey - Fed rate cuts remain a distant prospect as the crypto market is hit hard, resulting in 135,000 liquidations.

On March 19 (GMT+8), the crypto market experienced a sharp plunge, with major coins generally retracing by 4%. As of press time, Bitcoin ( BTC) fell 4.07%, Ethereum ( ETH) dropped 5.59%, Ripple ( XRP) declined 4.06%, and Binance Coin ( BNB) fell 2.91%.

In this downward trend, Bitcoin and Ethereum bulls suffered heavy losses. Over the past 24 hours, 135,000 people across the network were liquidated for a total of $450 million, with $380 million in long positions liquidated, accounting for 84%.

Crypto market liquidation data, source: Coinglass

Early this morning, the Federal Reserve stood pat, announcing that the target range for the federal funds rate would remain unchanged between 3.5% and 3.75%, matching market expectations. However, the stance of the Fed and Powell suggests that rate cuts remain far off. The FOMC statement noted that the impact of developments in the Middle East remains unclear; furthermore, Fed Chair Powell stated, "If we don't see progress on inflation, we will not cut rates."