Cryptocurrencies fell on Thursday, mirroring broader risk-off sentiment, after the Fed held interest rates steady and, hence, boosting the dollar.
Shiba Inu nursed fresh losses on Thursday, falling 2.03% in the last 24 hours to $0.000005736, extending a decline from March 17.
SHIB had previously risen to a nearly four-week high of $0.00000644 at the week's start as momentum appeared to recover temporarily. However, this retraced, with Shiba Inu reaching a low of $0.00000566 on Thursday.
The price drop clearly caught bulls unawares, with 15.99 billion SHIB long positions worth $91,630 liquidated. This accounted for 88.9% of total liquidations, which came in at $103,010, while short liquidations only amounted to $11,380, according to CoinGlass data.
Shiba Inu surpassed the daily MA 50, currently at $0.0000061 for the first time since January on March 16; however, the breakout was not sustained and was short lived.
The price drop reflects a familiar pattern seen in recent weeks, where rallies have struggled to gain traction. Short-term holders continue to exhaust rallies, absorbing momentum before any breakout can develop.
Digital assets showed little reaction after the Federal Reserve held interest rates steady. Cryptocurrencies often do better in low-interest-rate environments, which often prompt investors to turn to riskier assets to boost returns.
The Federal Reserve left interest rates unchanged in the 3.50%-3.75% range on Wednesday, pausing a rate-cutting cycle to boost the U.S. dollar.
Risk assets tumbled across the board as a result, with Nasdaq 100 futures trading down. The crypto market likewise fell, mirroring the risk-off move across the global markets.
Over $544 million in leveraged crypto futures bets have been liquidated across crypto positions in the last 24 hours, with longs, or bullish bets, accounting for most of the figure at $442 million. Short liquidations came in at $98.21 million, indicating the price drop clearly caught bulls off guard.