Jerome Powell’s Comments on Bitcoin Reserve Fuel Uncertainty In Crypto Market

In a dramatic turn of events, the cryptocurrency market experienced a massive liquidation of $310 million within just one hour. This sudden wave of sell-offs and massive liquidation in crypto market triggered the market volatility.

Massive Sell-Offs Trigger Crypto Market Crash: $310 Million Liquidated in 1 Hour

The cryptocurrency market witnessed an intense sell-off on Wednesday, with a staggering $310 million liquidated from the market within just one hour. This sudden wave of sell-offs and massive liquidation in crypto market triggered market volatility.

According to data from Watcher.Guru, the total liquidations in the past 24 hours reached an astronomical $1.14 billion, highlighting the extreme volatility and high stakes in the digital asset realm.

This news comes hot on the heels of Federal Reserve Chair Jerome Powell's remarks on the possibility of the U.S. central bank holding massive amounts of Bitcoin in reserve. During a press conference following the Federal Open Market Committee meeting, Powell stated that the Federal Reserve is not legally permitted to participate in such an initiative.

Despite rumors of the Biden administration and President-elect Donald Trump discussing the creation of a Strategic Bitcoin Reserve, Powell emphasized that any legal adjustments to facilitate such actions would require Congressional approval.

Following Powell's remarks, Bitcoin briefly fell by as much as 5.3% to $100,680, having earlier reached an all-time high of $108,000 during the week.

Meanwhile, U.S. stocks experienced a major downturn on Wednesday, with major indices initially rising but then erasing gains following the Federal Reserve's announcement of a 25-basis-point interest rate cut, bringing rates to the 4.25%-4.50% range.