Bitcoin Struggles to Hold $120,000 as Ethereum Faces Resistance Below $4,000

Federal Reserve Chair Jerome Powell's comments on inflation risks triggered over $200 million in leveraged liquidations, impacting crypto market sentiment and prices.

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Summary

Following Federal Reserve Chair Jerome Powell's decision to maintain interest rates, the crypto market faced volatility with over $200 million in leveraged positions liquidated. Bitcoin briefly dipped below $116K but recovered to around $118K, while Ethereum fell about 3% before stabilizing. Altcoins experienced larger swings, with some dropping around 10% before recovering. Analysts suggest that if inflation cools and the Fed shifts its stance, Bitcoin could rally toward $150K by year-end.

Terms & Concepts
  • leveraged liquidations: The forced closure of leveraged trading positions when the market moves against the trader, resulting in significant losses.
  • altcoins: Cryptocurrencies other than Bitcoin, often characterized by their unique features and use cases.
  • Federal Reserve: The central banking system of the United States, responsible for monetary policy and regulating the financial system.