Fed Interest Rate Hike Warning Revived...Cryptocurrency Defends $2 Trillion Market Cap 'Iron Wall'

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As the U.S. Federal Reserve's (Fed) warning of interest rate hikes revived, the cryptocurrency market capitalization decreased by 0.63%, and the liquidation volume for investors betting on a rise was approximately three times higher than for those betting on a fall.

According to crypto media outlet BeInCrypto on July 9 (local time), the total cryptocurrency market capitalization decreased by 0.63% to approximately $2.11 trillion. This came as the Federal Reserve's hawkish meeting minutes revealed inflation risks and the possibility of interest rate hikes, compounded by tensions in Iran and the International Monetary Fund's (IMF) price warnings.

The Fed's June meeting minutes showed that all members supported keeping interest rates unchanged, but some raised the need for an increase. A majority of members judged that additional tightening might be necessary if AI demand, Middle East tensions, and tariffs stimulate prices. The total cryptocurrency market capitalization has remained in a downtrend channel after peaking at $2.72 trillion on May 10, and if it fails to defend $2.09 trillion, then $2.06 trillion and $2.02 trillion are presented as the next support levels.

Leveraged investors were also hit hard. Recent 24-hour liquidations amounted to approximately $266.8 million, with long position liquidations reaching $198.9 million, roughly three times the short position liquidations of $67.9 million. BeInCrypto assessed that since the total liquidation volume was below $267 million, it was closer to a clearing out of excessively concentrated long positions rather than a cascading liquidation event.

Among altcoins, Lighter (LIT) fell by about 6% but maintained a monthly gain of 51%. Santiment data showed 86 whale transactions exceeding $100,000, marking the strongest whale activity in six months. On the chart, a bull flag structure was maintained, and the defense of the $2.24 support level and a breakthrough of $2.55 were presented as key conditions for further increases towards $2.89, $3.04, and $3.26.

[Article Key Summary]

-Cryptocurrency market capitalization decreased by 0.63% to approximately $2.11 trillion, with the Fed's potential interest rate hike pressuring the market.

-24-hour long position liquidations amounted to $198.9 million, approximately three times the short position liquidations of $67.9 million.

-Lighter fell by 6% but maintained a 51% monthly gain, and the strongest whale activity in six months was observed.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*