Fed Minutes and Geopolitical Tensions Shake Crypto Market: $224 Million Liquidated

Fed’s Hawkish Stance and Interest Rate Expectations The release of the U.S.
Federal Reserve’s (Fed) January FOMC meeting minutes triggered a sharp wave of selling across the cryptocurrency market.
The minutes revealed that officials remain cautious in the process of bringing inflation down to the 2% target and that further interest rate hikes could be considered if necessary.
This development has almost entirely eliminated expectations for a rate cut in March, with markets now pricing in a 93% probability that interest rates will remain unchanged.
Macroeconomic uncertainties have dampened investor risk appetite, accelerating the exit from crypto assets.
$224 Million Liquidated in the Market Significant losses in leveraged positions led to a market-wide liquidation of $224 million.
The total cryptocurrency market capitalization decreased by 1.52%, falling to $2.31 trillion.
Bitcoin (BTC) retreated to the $67,047 level with a 1.66% decline, while XRP traded at $1.42 following a 4.02% loss in value.
Geopolitical Risks and Focus on PCE Data In addition to economic pressures, escalating military tensions between the U.S.
and Iran have pushed investors toward safe-haven assets.
While capital exiting speculative assets was observed moving into gold, market participants have turned their focus to the U.S.
Personal Consumption Expenditures (PCE) data to be announced on February 28.
This data, which will provide critical clues regarding the trajectory of inflation, will be a decisive factor for the short-term direction of cryptocurrencies.
Investors continue to closely monitor macroeconomic data to anticipate the Fed's next move.