More than 150,000 traders were wiped out yesterday.
The US Federal Reserve decided to do what many expected and lowered the key interest rates by 25 basis points earlier today.
And although such a move is usually considered bullish for risk assets like cryptocurrencies, the reality is that the immediate impact was not positive at all.
Even before the Federal Open Market Committee meeting, many anticipated similar behavior from Bitcoin. Previous examples have shown that the cryptocurrency tends to correct initially after the U.S. central bank cuts interest rates, as noted by Merlin the Trader.
The price of Bitcoin stabilized at around $112,000 and $113,000 earlier today in anticipation of the Federal Open Market Committee meeting. Once Jerome Powell endorsed the experts' recommendations, the value of Bitcoin sharply declined and fell to just over $109,000.
The price of Bitcoin rebounded in the following hour, currently exceeding $110,500. According to some analysts, this drop was also anticipated due to the gap created by the Chicago Mercantile Exchange (CME) that formed after the weekend's rise, which has finally been closed, potentially opening the door for upcoming gains.
Alternative currencies followed this approach with their own corrections, as ETH slipped below $3,850, and XRP fell below $2.55, with many low market cap companies experiencing more significant declines.
