Live updates: Bitcoin edges higher as Nasdaq climbs 1.7% in wake of Fed rate hike
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
AI-generated summary based on the linked source; not independently verified. This is not investment advice. Verify market-moving details at the original publisher before acting. See our editorial policy, AI content policy, and financial disclaimer.
Summary
Bitcoin remained flat near $76,400 after a 1% rise, with other major cryptocurrencies such as Zcash, Solana, BNB, dogecoin, ether, and XRP also showing gains. The Federal Reserve raised its target interest rate by 0.25 percentage points to a range of 3.75%–4%, a move priced in by markets and met with minimal Bitcoin price reaction. Approximately 86,816 traders were liquidated over 24 hours, resulting in $345 million in forced closures mainly affecting short positions.
Why it matters
The source highlights that Bitcoin's limited reaction to the Fed's rate hike might indicate the market had already priced in the move. The high level of liquidation, especially on leveraged positions such as Zcash, could influence market dynamics going forward, but the report does not explicitly discuss broader implications for users or policy.
Key context
Prior to the Fed's rate hike, Bitcoin had reacted negatively to the Senate's failure to pass the CLARITY Act, which may have affected its sensitivity to a stronger US dollar. Liquidations occur when leveraged traders’ collateral fails to cover losses, leading exchanges to close their positions, which significantly impacts price movements in volatile crypto markets.
Key numbers and entities
Zcash rose more than 17%, reaching nearly $1,358, with $56 million in liquidations on its $23 billion market capitalization. Bitcoin’s liquidation volume was $85 million, ether’s was nearly $89 million, and the largest single order liquidated was an $18 million bitcoin position on Hyperliquid. The Fed raised rates to 3.75–4%. A total of 86,816 traders were liquidated, accounting for $345 million in losses.
What remains unclear
The source does not explain the longer-term market impact of the rate hike or the liquidation levels. It also does not specify the reasons behind the high leverage leading to liquidations across certain coins like Zcash, nor does it detail the potential responses from traders or exchanges following these events.