Federal Reserve Chairman Jerome Powell said on Wednesday, December 18, 2024 that the US central bank did not want to be involved in any government effort to hold large amounts of bitcoins.

This announcement has pushed the cryptocurrency market down and sowed doubt among investors regarding the future US policy towards cryptocurrencies. This sudden drop in generating a massive liquidation that reached 825 million dollars, mainly among long operators,

The vast majority of liquidations come from long-term operators (buyers). While these amounts appear to be significant, they remain much lower than on December 9. There was $1.2 billion in liquidations that day. The market then recovered in 48 hours before breaking a new record.

Some experts are concerned about the level of debt of crypto investors, whether they are professional or private. This is the case for example of Microstrategy. If the market continues its decline for several days, the consequences could be great and the market be driven strongly down. Prices are therefore to be monitored in the coming days.