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The cryptocurrency market is experiencing a sell-off, with a staggering $787 million wiped out in crypto liquidations across various digital assets. Among the hardest hit was Dogecoin (DOGE), which saw a loss of $29 million in crypto liquidations, according to CoinGlass data.

The downturn comes as Bitcoin and other major cryptocurrencies saw significant losses; macroeconomic concerns and profit-taking by traders might have contributed to the bearish sentiment.

Cryptocurrencies sank as the Federal Reserve’s cautious outlook for interest-rate cuts hurt speculative investments.

Bitcoin dipped as low as $98,698 at one point on Thursday; the majority of cryptocurrencies, including Dogecoin, also struggled.

Dogecoin's price is currently down 6.05% in the last 24 hours, trading at $0.365 after reaching lows of $0.34. According to CoinGlass, this resulted in $24.59 million in bullish bets liquidated in the last 24 hours, while shorts were liquidated for $5.93 million.

Crypto market sell-off

The crypto market faced selling pressure as Fed’s signal of fewer rate cuts sent a shudder across markets. Lower rates usually increase demand for most risky assets, including cryptocurrencies.

The Federal Reserve lowered its key interest rate by a quarter percentage point on Wednesday, the third in a row, but warned against more cuts in the coming years. 

In a move widely anticipated by markets, the Federal Open Market Committee cut its overnight borrowing rate to a target range of 4.25%-4.5%, back to the level where it was in December 2022 when rates were on the move up.

In delivering the 25-basis-point cut, the Fed signaled that it will most likely lower twice more in 2025. Fed Chair Jerome Powell stated at a post-meeting news conference that more progress is needed on inflation before further loosening monetary policy.

The market decline led to $787 million in liquidations; $661 million in bullish bets were liquidated, while shorts liquidations accounted for $125 million.