Fed Holds Rates Steady, but Crypto Gets Sent to the Liquidation Line 💦

Bitcoin, Ethereum and XRP came under pressure after the US Federal Reserve kept interest rates unchanged at the latest FOMC Meeting, as more than $365 million in crypto liquidations were recorded over 24 hours. CoinGlass data showed nearly $210 million in long liquidations and over $150 million in short liquidations across the period.

More than 82K traders were liquidated during the 24-hour window. Bitcoin accounted for $96 million in liquidations, while the largest single short liquidation order was an ETH-USDT trade worth $6.53 million on Binance.

The selloff followed a decline in technology stocks amid mounting skepticism over returns on AI spending. Bitcoin also remained volatile as traders positioned for a monthly close below $80,000, while expectations surrounding hot PCE inflation data and monthly options expiry added caution across the broader crypto market.

Markets now price in an 81% chance of a December Fed rate hike. The Federal Reserve’s decision to hold rates steady did not prevent Bitcoin, Ethereum and XRP from declining, as macroeconomic uncertainty and forced position reductions weighed on the crypto market.