Bitcoin slips under $76,000 as 24-hour crypto liquidations hit $565 million
According to CoinDesk, cryptocurrencies sold off sharply on Wednesday as a cluster of macro shocks hit risk sentiment. Bitcoin fell 2.30% over 24 hours to $75,472, dropping below the closely watched $76,000 level. Ethereum slid 3.69% to $2,240, while XRP declined 2.26% to $1.36.
The total crypto market capitalization fell 2.06% to $2.53 trillion, wiping out $5.65 billion. Forced unwinds accelerated across derivatives markets: long liquidations totaled $370 million, far outpacing $195 million in short liquidations.
The move did not hinge on a single catalyst. Markets were rattled by three developments in quick succession. At what was described as Jerome Powell's final meeting as Fed chair, policymakers kept rates unchanged, but altered their inflation language. The Fed removed its earlier phrasing that inflation was "slightly elevated" and stated more plainly that "inflation is elevated," a shift traders read as pushing rate-cut expectations further out and tightening the liquidity backdrop that has supported risk assets.
Energy markets added pressure. Brent crude jumped to about $119.50 a barrel, its highest level since the 2022 peak tied to the Iran conflict. The International Energy Agency called the situation the greatest energy security threat in history. President Trump rejected Iran's proposal to reopen the Strait of Hormuz, and U.S. Central Command said it is prepared to launch a series of strikes on Iranian infrastructure.
Among major tokens, Solana fell 2.81% to $82.44, and Dogecoin dropped 3.36%. The Fear & Greed Index stood at 39, in "fear" territory, pointing to elevated caution rather than capitulation as traders track Iran-related headlines and oil prices for the next signal.
With Powell's tenure ending and a new Fed chair taking office against a backdrop of surging energy costs and continued Middle East conflict, the macro environment for crypto in May has become markedly more complicated than it looked a week ago.
Related: Powell delivers likely final speech as rates hold steady
