Crypto Markets Lose $80B as Bitcoin Rejection Sparks $700M Liquidations

Leverage amplified the damage. More than 165,000 traders were liquidated within 24 hours, with total erased positions approaching $700 million. Bitcoin and Ethereum accounted for the largest share. Overextended bullish bets became fuel for the market’s accelerating decline, forcing exchanges to close positions as prices moved against leveraged participants. The scale of liquidations shows how a relatively compact price move can produce disproportionate losses when positioning becomes crowded.

The timing added unease. The crash arrived one day before the U.S. Federal Reserve was scheduled to announce its interest rate decision, with uncertainty over a possible increase weighing on risk-sensitive assets. Bitcoin had closed bearishly and needed to remain above the $63,000 support to avoid fresh local lows. The Federal Reserve decision now hangs over an already fragile technical setup.

Traders said the session felt like a classic deleveraging event: a failed breakout at a known resistance level, followed by a cascade of stop-losses and margin calls that snowballed through the order book. The relatively low volume heading into the Fed decision made the market more susceptible to sharp moves, several traders told AlphaScala. With momentum reversed, altcoins under pressure and leverage sharply reduced, Bitcoin needs to hold $63,000 through the Fed’s announcement to avoid another leg down, traders said.