Advertise
- Debashree Patra
Debashree Patra
- Reviewed by:
Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Oct 30, 2025 10:15 UTC
-
Crypto Liquidation Surge: Fed Rate Cut Triggers $817M Wipeout Across Markets
Bitcoin tumbles to $108K as Fed’s cautious tone sparks $817M in crypto liquidations; traders brace for volatility amid uncertain rate outlook.
Over 165K traders liquidated after Fed comments shake markets; analysts see short-term pain but potential long-term upside for Bitcoin.
The crypto market took a sharp hit this week, with Bitcoin sliding to $108,000 before recovering slightly above $110,000. The sudden drop wiped out more than $817 million in leveraged positions across major exchanges.
Many traders had hoped the market would rally after the Federal Reserve’s 25-basis-point rate cut, but that optimism faded quickly when Fed Chair Jerome Powell hinted that another cut in December isn’t guaranteed. His cautious comments triggered panic among investors, leading to what analysts are calling a “sell-the-news” reaction.
Why Is the Crypto Market Down Today?
At first, the rate cut looked like good news for crypto. Lower interest rates typically make risk assets like Bitcoin and Ethereum more appealing. But Powell’s mixed message changed the mood fast. He cut rates, yet warned about lingering inflation risks and uncertain economic conditions.
That uncertainty made traders pull back from risky positions, sparking a wave of forced liquidations as overleveraged bets were automatically closed out.
According to Nick Ruck, analyst at LVRG Research, it was a textbook case of market emotion.
“The Fed’s tone scared investors in the short term, but its plan to end quantitative tightening by December could actually be bullish for crypto in the long run,” he said.
Massive Crypto Liquidations Add Pressure
Data from CoinGlass shows that nearly 165,000 traders were liquidated in just 24 hours. The largest single liquidation was an $11 million Bitcoin long on Bybit. Exchanges like Hyperliquid, Bybit, and Binance saw hundreds of millions in positions wiped out, a sign of just how leveraged the market had become.
These forced sell-offs pushed Bitcoin prices even lower, fueling more panic.
- Also Read :
- Top Five Altcoins To Buy Now For Big Gains in November
- ,
Still, analysts say the market isn’t turning fully bearish yet. If Bitcoin can hold above its key $110,000 support, it could rebound toward $112,500 or even $115,000 as confidence returns. But if selling pressure continues, a retest of $108,000 or even $106,000 could be next.
Short-Term Pain, Long-Term Promise
On-chain analyst Ali Martinez noted that five out of six FOMC meetings this year have coincided with Bitcoin price corrections, while only one triggered a short-term rally. His analysis shows a clear pattern: Fed decisions often bring short-term volatility as traders react to interest rate and liquidity shifts.
The recent improvement in U.S.–China trade sentiment has helped calm nerves, but the market remains on edge. If the Fed follows through on expanding liquidity later this year, Bitcoin could stabilize above $115,000 in November.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
The crypto market fell as investor confidence weakened after the Fed’s cautious comments on future rate cuts, triggering massive leveraged liquidations.
Over $817 million in leveraged crypto positions were wiped out in 24 hours, as more than 165,000 traders faced forced liquidations across major exchanges.
Not yet. Analysts say Bitcoin may rebound if it holds above $110,000, though another dip toward $108,000 remains possible if selling continues.
Yes. Ending quantitative tightening and expanding liquidity could lift Bitcoin above $115,000 as confidence and liquidity return to the market.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Yes 
No 
