Chainlink's price has experienced a significant downturn today, driven by broader market reactions to recent Federal Reserve announcements. The Fed's projection of only two rate cuts for 2025 has disappointed investors, leading to a market-wide selloff. This has particularly impacted altcoins, with Chainlink (LINK) among those suffering substantial losses. The CoinDesk 20 Index, which tracks the performance of major cryptocurrencies, has tumbled by more than 10%, reflecting the widespread impact of the Fed's stance on interest rates. "The crypto market has already been on pins and needles around the possibility for a correction," noted Joel Kruger, market strategist at LMAX Group.
Adding to the pressure on Chainlink, the broader crypto market has seen nearly $1.2 billion worth of leveraged trading positions liquidated, with over $1 billion of those being long positions. This liquidation wave has exacerbated the downward pressure on prices, as investors scramble to cover their positions. Despite the recent accumulation of LINK tokens by a whale, which had previously signaled potential recovery, the current market sentiment remains bearish. The whale's activity, which included withdrawing significant amounts of LINK from Binance, has not been enough to counteract the broader market downturn.
Chainlink's price has fallen by 10.55% today, reaching a low of $22.264810.