- Over $491 million in cryptocurrency liquidations occurred following the Fed’s interest rate decision.
- High U.S. inflation, driven by global energy supply disruptions, contributed to the market-wide decline.
- Analysts like Anthony Scaramucci of SkyBridge Capital view the current dip as a potential buying opportunity for Bitcoin.
Markets across the United States shuddered this week after newly elected Federal Reserve Chair Kevin Warsh announced interest rates would remain unchanged. Consequently, a wave of selling pressure swept through nearly every major asset class, from stocks and Gold to cryptocurrencies.
Data shows the digital asset market saw a staggering $491.36 million in liquidations within 24 hours. The S&P 500 plunged 1.21%, while gold also fell to $4,270 per ounce in the wake of the central bank’s statement. This synchronized decline has left investors questioning when, or if, a recovery might begin.
The primary catalyst appears to be stubbornly high inflation, which rose to 4.2% for May 2026. A key factor behind this surge was the U.S.-Iran conflict, which disrupted global energy supplies and sent crude oil prices skyrocketing. However, a recent Memorandum of Understanding has reopened the Strait of Hormuz, potentially cooling inflation and allowing markets to rebound.
Meanwhile, the stock market’s dip was exacerbated by liquidity draining ahead of the SpaceX (SPCX) initial public offering. Even the much-anticipated SpaceX itself lost roughly $190 billion in market capitalization during the selloff. This broad downturn presents a classic scenario for tactical investors.
Seasoned traders often employ a “buy the dip” strategy during such periods of widespread fear. Notably, SkyBridge Capital founder Anthony Scaramucci believes Bitcoin is currently at its bottom, anticipating it could hit $70,000 by July. “Bitcoin is at its bottom right now,” he stated, suggesting the larger crypto market will follow BTC‘s trajectory.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
