The collapse of the crypto market wiped out $1.15 billion as hopes for cutting down the whales of the Fed collapsed.

The global cryptocurrency market has just fallen by 5.66%, leaving many investors wondering what is happening. Bitcoin, which has recently been aiming for a breakthrough above $109,000, has dropped back to around $104,000. That is a decrease of 3.6% in just 24 hours. And not only Bitcoin, Ethereum, XRP, Solana, and even meme coins like Dogecoin also followed, falling from 6% to 15%. So, what is the reason behind this sudden incident? The hope for a Fed rate cut has been extinguished. The biggest reason seems to be the new signals from the Federal Reserve. After the latest inflation data was released, showing that the core CPI is still higher than expected and producer prices are rising, the chances of a rate cut in June have nearly disappeared. According to the Fed CME tool, the market currently has a 97.4% chance that the Fed will not lower interest rates this month. This makes investors nervous, and this is reflected in cryptocurrency prices. Bitcoin ETFs witnessed significant outflows. Another strong blow comes from the spot Bitcoin ETF. After several days of strong inflows, June 12 saw a sudden reversal, with $202 million flowing out. Leading the way, Fidelity's own ETF experienced a withdrawal of $197 million, while ARK Invest's ETF lost over $10 million. Surprisingly, BlackRock still maintained no inflows or outflows. 1.15 billion USD liquidated cryptocurrency Leverage traders have been significantly affected. In the past 24 hours, over 247,000 traders have been liquidated, with a total liquidation amount reaching 1.15 billion dollars. The largest single liquidation order was a long position worth 201 million dollars on Binance. If Bitcoin falls to around $95,800, nearly $11.76 billion in value of long positions will be at risk. This could trigger another wave of sell-offs. The technical chart suggests more pain Meanwhile, technically, the indicators show that Bitcoin will have to struggle more as the chart shows rejection near the resistance area of 106,000 dollars. Meanwhile, the MACD is showing a slight bullish crossover, but the momentum is weakening. If Bitcoin cannot hold the $104,000 level, we may soon see a retest of the $102,000 level or even $100,000. The Altcoin market is also affected. Altcoins are under great influence, following the downward trend of Bitcoin. The Altseason Index has dropped to 16, indicating that Bitcoin still holds its dominant position in the market Among the biggest losing coins, Ethereum (ETH) has fallen more than 9.29%, currently trading at nearly $2,508. While XRP, Solana, and Cardano have all seen significant declines, there are still no signs of recovery.