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Cryptocurrencies fell on Thursday, mirroring broader risk-off sentiment, after the Fed held interest rates steady and, hence, boosting the dollar.
Shiba Inu nursed fresh losses on Thursday, falling 2.03% in the last 24 hours to $0.000005736, extending a decline from March 17.
SHIB had previously risen to a nearly four-week high of $0.00000644 at the week's start as momentum appeared to recover temporarily. However, this retraced, with Shiba Inu reaching a low of $0.00000566 on Thursday.
The price drop clearly caught bulls unawares, with 15.99 billion SHIB long positions worth $91,630 liquidated. This accounted for 88.9% of total liquidations, which came in at $103,010, while short liquidations only amounted to $11,380, according to CoinGlass data.
Shiba Inu surpassed the daily MA 50, currently at $0.0000061 for the first time since January on March 16; however, the breakout was not sustained and was short lived.
The price drop reflects a familiar pattern seen in recent weeks, where rallies have struggled to gain traction. Short-term holders continue to exhaust rallies, absorbing momentum before any breakout can develop.
Crypto market hit with $544 million liquidations
Digital assets showed little reaction after the Federal Reserve held interest rates steady. Cryptocurrencies often do better in low-interest-rate environments, which often prompt investors to turn to riskier assets to boost returns.
The Federal Reserve left interest rates unchanged in the 3.50%-3.75% range on Wednesday, pausing a rate-cutting cycle to boost the U.S. dollar.
Risk assets tumbled across the board as a result, with Nasdaq 100 futures trading down. The crypto market likewise fell, mirroring the risk-off move across the global markets.
Over $544 million in leveraged crypto futures bets have been liquidated across crypto positions in the last 24 hours, with longs, or bullish bets, accounting for most of the figure at $442 million. Short liquidations came in at $98.21 million, indicating the price drop clearly caught bulls off guard.
Dan Burgin
Vladislav Sopov
