Cosmos' ATOM Token Drops Amid Macro Correction and Leverage Liquidations

Cosmos' native token ATOM plummeted 3.1% over the past 24 hours, but not due to any specific issue within the project itself.

The drop is attributed to a broad macro-driven crypto correction ahead of the Federal Reserve's FOMC decision, where traders repriced the odds of a surprise rate hike and reduced exposure to speculative assets like cryptocurrency.

A total crypto market cap decline of about 1% accompanied this move, with sentiment gauges indicating investors were trimming risk ahead of the Fed announcement.

Leverage liquidations also played a role, as more than $600-700 million in crypto derivatives positions were liquidated over the past day, mostly long positions.