Bullish cryptoassets traders hit by approximately 30 billion yen in liquidation ─ Powell's remarks shake the market | CoinDesk JAPAN

• The cryptocurrency market experienced volatility after the Federal Reserve Board (FRB) kept interest rates unchanged, but Chairman Jerome Powell's hawkish remarks triggered a sharp decline.
• According to CoinGlass data, approximately $200 million in leveraged positions were liquidated within one hour after the interest rate decision.
• Analysts suggest that if the Fed shifts to interest rate cuts, Bitcoin could reach $150,000 by the end of the year.

On July 30th in the cryptoassets market, Federal Reserve Chairman Jerome Powell made hawkish comments, which unsettled traders engaged in leveraged trading, leading to increased volatility.

According to CoinGlass data, during Mr. Powell's press conference, Bitcoin (BTC) fell below $116,000, leading to a surge in the liquidation amount of all digital assets to over $200 million (approximately 30 billion yen, based on an exchange rate of 1 dollar = 149 yen) within one hour.

Liquidation of cryptoassets (CoinGlass) The FRB kept interest rates unchanged, and Mr. Powell emphasized potential inflationary pressures from tariffs, but two board members argued for a rate cut and opposed the hold.

Bitcoin subsequently rebounded to above $117,000 but is still down 0.8%, trading near the lower limit of the narrow range it has been trading in for the past three weeks.

Ethereum (ETH) briefly fell by 3%, but has recovered to $3750, remaining down by 0.6% over the past 24 hours.

Altcoins initially fell sharply but quickly rebounded. Solana (SOL), Avalanche (AVAX), and Hyperliquid (HYPE) decreased by 4-5% before reducing their losses.

On the other hand, BONK and PENGU rebounded after a 10% sharp drop.

In the traditional market, Meta and Microsoft announced strong quarterly earnings, rising by 10% and 6% respectively after normal trading hours.

"The market is increasingly starting to think that the Fed may be falling behind," said Matt Mena, an analyst at digital asset issuance company 21Shares, in a market report.

"The PCE (Personal Consumption Expenditures) index last week showed weak results for two consecutive months, and consumer spending is also weakening," Mr. Mena pointed out and continued as follows.

"With the unemployment rate on an upward trend and real interest rates still being restrictive, maintaining such tightening policies carries the risk of a broad recession due to excessive tightening."

Mr. Mena pointed out that the current situation resembles the fourth quarter of 2023, characterized by "slowing inflation, increasing political instability, and the Fed constrained by lagging indicators."

Mr. Mena stated that the "stage is set" for the FRB to shift to interest rate cuts, which could result in Bitcoin reaching $150,000 by the end of the year.