Albeit surging close to $40,000 on Wednesday following the relief of less hawkish sentiments driven by the Fed’s rate hike, Bitcoin fell sharply yesterday, bottoming out at $35,700 before closing at roughly $36,500.
According to Coinglass, the total number of liquidations in the past 36 hours has exceeded $427 million with Bitcoin, Ethereum, STEPN and APE leading in the carnage after $200M, $69.18M, $12.42M and $12.24M in the respective tokens was wiped out.
The crypto sell-off has been linked to a powerful wave of risk aversion that also shook the US stock market with stocks pulling back sharply, delivering investors one of the worst days since 2020.
On Wednesday, the Fed increased its interest rate by 50 basis points as promised, with Fed Chair mulling a more aggressive approach toward reducing its balance sheet.
Just hours after the price attempted to break and close above the $40,000 psychological level on Wednesday to no avail, Bitcoin fell below the $37,500 support.