Home Crypto BTC Crashed Below $37K To A 2-Month Low: Price Analysis

BTC Crashed Below $37K To A 2-Month Low: Price Analysis


BTC crashed below $37K to a 2-month low as the markets digest the FED’s 50 basis point rate hike and now the rate futures posted a 75% chance for a 75 basis point hike back in June so let’s read more in today’s latest Bitcoin news today.

Bitcoin’s price took a drop recently after the stocks retraced gains that it made after the Federal Open Markets Committee Meeting and fell to $36,520 which is the lowest price point since Russia’s attack on Ukraine. At the FOMC meeting, the Federal Reserve Chairman Jerome announced the first 0.5% interest rate hike since 2000 and he set future expectations for further 0 basis points hikes later this year. He also claimed that 75 basis point hikes were off the table but BTC crashes below $37K and stocks crashed as well after their jump by 2%.

Bitcoin USD Source TradingView

The Optimism seemed short-lived but the S&P 500 lost the gains and it is down by 3.3% on the day in the meantime, Bitcoin’s price started to plunge at 13:20 UTC from $39,400 down below the $37,000 in less than two hours. The main reason for the drop seems to be that the US rate futures prices the chance for a 75 basis point hike by 75% in June. The crash seems to have coincided with the liquidation cascade and Coinglass reported $146 million in crypto liquidations in the past hour alone with $68 million In BTC losses. This is over two-thirds of the liquidations to take place in the past year and half of the liquidations over the past day. The last time liquidations of this size happened was in mid-April when the mid-March hype around Terra’s BTC buy semes to die off.

crypto market
Crypto market overview Source Quantity Crypto, May 6

As recently reported, NFT-based coins like Axie Infinity and ApeCoin plummeted amid the wider marekt rout and posted double-digit losses in the past day. Apecoin as the ETH-based token for the BAYC ecosystem shed about 17% of its value in the past day and now trades at $13.30 as per the data from CoinMarketcap. APE is the 31st biggest coin with a market cap of $3.8 billion and today’s bearish action put the token 66% down from the ATH of $39.40 recorded in March 2020. Axie Infinity took as the token that powers the game, dropped by 15% in the past day. AXS hit an ATH of $165 in November 2021 marking a drop of 82% and now trades at $28.52.

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