Crypto Crash Leads to $1 Billion in Leveraged Liquidations in 24 Hours

The cryptocurrency market experienced significant turmoil after the Federal Reserve’s rate cut decision, leading to a $1 billion surge in leveraged liquidations.

Bitcoin fell below $96,000, causing $878 million in long position losses and $160 million in short position losses. The total crypto market cap dropped 9.5% to $3.4 trillion, with Ethereum down 8%, Ripple down 5%, and Solana and Dogecoin suffering double-digit losses.

The Federal Reserve’s unexpected hawkish stance following a 25 basis point rate cut contributed to the market’s instability. Inflation remains above the Fed’s target, adding to economic uncertainty.

Bitcoin ETFs showed mixed performance, with Grayscale’s ETF experiencing significant outflows. Despite the sell-off, Bitcoin is up 130% this year, and MicroStrategy continues its acquisition strategy.

Some traders see the recent pullback as a healthy correction. The Crypto Fear and Greed Index stands at 75, indicating ongoing investor greed.

Sentiment: Negative