Chainlink (LINK) has experienced a significant decline today, driven by broader market trends affecting altcoins. The cryptocurrency market has been under pressure due to a massive liquidation of over $1.5 billion in long positions, which has particularly impacted altcoins like LINK. This liquidation has led to a shake-up in funding rates and has weakened the upward momentum that many cryptocurrencies had been experiencing. The anticipation of upcoming U.S. inflation data and the Federal Reserve's interest rate decision on December 18 has added to the market's uncertainty, causing investors to reassess their positions.
Market experts from QCP Capital have noted that the recent fluctuations in the cryptocurrency market are largely due to macroeconomic factors and the liquidation event. They highlighted that while Bitcoin has managed to stabilize around its critical support levels, altcoins have not fared as well, with many experiencing sharper declines. The lack of significant developments in the near term, following political announcements such as Trump's crypto-friendly SEC candidate, has also contributed to the subdued market sentiment.
Chainlink's price has dropped by 8.12% today, reaching a low of $20.529312. This decline reflects the broader challenges facing altcoins in the current market environment.