Fed Rate Hike Triggers $345 Million in Crypto Liquidations; Zcash Jumps Alone
Summary
- The crypto derivatives market saw liquidations totaling $345 million after the Federal Reserve raised its benchmark interest rate.
- Of the total liquidations, short positions accounted for $208 million and long positions for $137 million.
- Zcash (ZEC), which has a market capitalization of about $23 billion, saw liquidations of $56 million and was trading near $1,352 after jumping nearly 12% from a day earlier.
The Federal Reserve's interest-rate increase triggered $345 million in liquidations in the crypto derivatives market over the past 24 hours.
CoinDesk reported on September 17 that 86,816 investors were forcibly liquidated during that period. Total liquidations were estimated at $345 million.
Short positions accounted for $208 million of the total, while long positions made up $137 million.
The Fed decided on September 16 to raise its benchmark interest rate by 0.25 percentage point at its Federal Open Market Committee meeting. Fed Chair Kevin Warsh said at a news conference the same day that the rate increase was "an important step" toward price stability, signaling the possibility of additional hikes.
Among major cryptocurrencies, Zcash stood out with the sharpest gain. According to CoinMarketCap, Zcash was trading near $1,352 as of 8:24 p.m. Seoul time, up nearly 12% from a day earlier.
CoinDesk reported that Zcash, which has a market capitalization of about $23 billion, saw $56 million in liquidations over the past 24 hours, suggesting that elevated leverage amplified the price surge.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul