The Federal Reserve voted unanimously on Wednesday to raise the federal benchmark interest rate by 25 basis points to between 3.75% and 4%, marking the first hike in three years, aimed at addressing inflation pressures and uncertainties stemming from geopolitical tensions, with most officials planning another rate increase later this year.
Driven by the non-farm payrolls data release and the negative gamma mechanism, the Nasdaq composite plummeted 4.77% in a single day, wiping out about $1 trillion in U.S. stock market capitalization.
On June 5, Meta launched a multi-billion-dollar equity offering, intensifying the liquidity drainage effect on the market.
Between June 4 and 5, the crypto market saw single-day liquidations reach $1.73 billion, with 211,000 traders forcibly liquidated.
As a weather vane for market liquidity, Bitcoin has been falling continuously since June 2, with the crypto market taking the lead in a bull massacre.
On June 2, Alphabet priced an $84.75 billion equity offering, draining a massive amount of liquidity from the market.