The FED Lowers Its Rates, 200 Million Vanished In Crypto – Red Alert?

Last night, the American Federal Reserve (FED) officially announced a 50 basis points cut in its key rates. A decision eagerly awaited, which immediately sparked mixed reactions in the crypto markets. Some anticipate a surge, while others predict a crash. At the heart of these discussions are the massive liquidations in the crypto sector, reaching new highs.

Massive Liquidations Shake the Crypto Market

The crypto world experienced a real shockwave after the FED rate cut announcement. Liquidations soared, reaching nearly $200 million in less than 24 hours.

According to Coinglass, most of the liquidated positions ($126 million) were shorts, indicating an unexpected bullish trend. The phenomenon particularly affected the boldest traders, with over 66,000 liquidations recorded.

The overall crypto market was not left behind, showing a 1.9% increase in market capitalization, climbing to $2.23 trillion. Trading volume, meanwhile, exceeded $120 billion, proving that the euphoria is not about to subside. Here are some key figures:

• 46% increase in liquidations in 24 hours;
• $200 million liquidated;
• 66,000 traders liquidated.

Bitcoin: The King of Cryptos Leads Liquidations

While Ethereum saw significant liquidations ($35 million), it was Bitcoin that stole the show with $75 million liquidated after a 2.9% price increase. BTC was flirting with $62,000, marking a decisive turn for the ‘queen of cryptos’.

The largest liquidation, worth $8.9 million in the BTC-USD pair, took place on Bybit, disrupting the positions of some overly confident traders.

The global open interest in cryptos nevertheless increased by 4%, reaching $58.7 billion. This rise reflects the growing FOMO (fear of missing out), driving investors to jump on the bandwagon before it’s too late.

This explosive mix predicts new price fluctuations, with some analysts already betting on a Bitcoin at $64,000 in the coming weeks.