Bitcoin Updates: Ambiguous Fed Rate Direction Triggers Crypto Sell-Off, $1.2 Billion Liquidated

In the last day, the cryptocurrency market saw a significant spike in liquidations, with more than $1.2 billion in positions erased as

and tumbled due to changing macroeconomic factors and shifting trader sentiment. Data from Coinglass cited by shows that most of these losses—about $1.1 billion—came from long positions, as traders were forced to liquidate after steep price drops.

Both Bitcoin and Ethereum fell by approximately 3% in just one hour, with BTC dropping from $108,000 to $105,000 and ETH sliding from $3,700 to $3,500. This swift downturn resulted in over $100 million in liquidations for each coin, with the largest single liquidation—a $33.9 million order—occurring on HTX. Hyperliquid, a decentralized exchange, also saw heavy liquidation activity, totaling $285 million, while Bybit and Binance reported $225 million and $146 million, respectively, as per

.

Several prominent traders suffered major losses. The anonymous analyst 0xc2a3, who previously maintained a flawless record, closed out Bitcoin, Ethereum, and

positions at a loss, turning their net profit/loss on Hyperliquid from +$33 million to –$17.6 million. At the same time, trader Machi Big Brother was completely liquidated, incurring losses exceeding $15 million. On the other hand, an experienced Bitcoin holder took advantage of the dip, opening $37 million in BTC and $18 million in ETH long positions on Hyperliquid, hinting at possible market stabilization.

This sharp decline came after a turbulent week filled with mixed signals from central banks and geopolitical events. The U.S. Federal Reserve’s recent 25-basis-point rate cut, announced on October 30, did little to calm investors, as Chair Jerome Powell warned that a further rate cut in December was “not guaranteed,” leading to a “sell-the-news” reaction. Meanwhile, the Trump-Xi summit in South Korea, intended to ease trade tensions, had little effect on crypto prices, with Bitcoin and Ethereum continuing to slide, according to

.

Adding to the downward pressure, the Coinbase Bitcoin Premium Index—which measures U.S. buying activity—remained near -$30 during the crash, reflecting strong selling from American investors. This was further intensified by incomplete liquidation data from aggregators, which often lack comprehensive exchange feeds.

Despite the recent chaos, some market watchers are still cautiously hopeful. Nick Ruck of LVRG Research pointed out that the Fed’s move to end quantitative tightening in December could eventually favor risk assets like cryptocurrencies, with Bitcoin and Ethereum potentially rebounding as borrowing costs decrease.

At the end of the 24-hour period, Bitcoin was priced at $107,000, down 2.7%, while Ethereum traded at $3,583—its lowest in nearly three months, according to

. Altcoins performed even worse, with , , and Solana dropping between 6% and 10%. The Fear and Greed Index for the market fell to 34, highlighting widespread investor anxiety.

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