Bitcoin News Today: Fed's Uncertain Rate Path Sparks Crypto Exodus, $1.2B in Liquidations

The cryptocurrency market experienced a dramatic surge in liquidations in the past 24 hours, with over $1.2 billion in positions wiped out as Bitcoin and Ethereum slumped amid shifting macroeconomic uncertainties and trader behavior. According to Coinglass data reported by FXStreet, the majority of the losses—$1.1 billion—stemmed from long positions, as traders faced margin calls following sharp price declines.

Bitcoin and Ethereum both dropped by roughly 3% within an hour, with BTC plunging from $108,000 to $105,000 and ETH falling from $3,700 to $3,500. The rapid correction triggered over $100 million in liquidations for each asset, with the largest single order—a $33.9 million trade—executed on HTX. The decentralized exchange Hyperliquid also saw significant activity, recording $285 million in liquidations, while Bybit and Binance tallied $225 million and $146 million, respectively, according to Incrypted.

High-profile traders were among the hardest hit. Pseudonymous analyst 0xc2a3, known for a previously unbroken winning streak, closed positions in Bitcoin, Ethereum, and Solana at a loss, flipping their net profit/loss on Hyperliquid from +$33 million to –$17.6 million. Meanwhile, trader Machi Big Brother was fully liquidated, suffering over $15 million in losses. Conversely, a veteran Bitcoin investor capitalized on the dip, opening $37 million in BTC and $18 million in ETH long positions on Hyperliquid, signaling potential stabilization.

The downturn followed a volatile week marked by conflicting signals from central banks and geopolitical developments. The U.S. Federal Reserve's recent 25-basis-point rate cut, announced on October 30, failed to reassure markets as Chair Jerome Powell cautioned that a December rate reduction was "not guaranteed," sparking a "sell-the-news" selloff. Simultaneously, the Trump-Xi meeting in South Korea, which aimed to ease trade tensions, had a muted impact on crypto markets, with Bitcoin and Ethereum continuing their declines, as noted in FXStreet coverage.

Compounding the pressure, the Coinbase Bitcoin Premium Index—a gauge of U.S. buying pressure—hovered near -$30 during the crash, indicating heavy selling by domestic investors. This trend was exacerbated by the underreporting of liquidations by aggregators, which often lack full data feeds from exchanges.

Despite the turmoil, some analysts remain cautiously optimistic. LVRG Research's Nick Ruck noted that the Fed's pivot to ending quantitative tightening in December could eventually benefit risk assets like crypto, with Bitcoin and Ethereum poised for a rebound as capital costs ease.

Bitcoin closed the 24-hour period at $107,000, down 2.7%, while Ethereum traded at $3,583—a near three-month low, according to Yahoo Finance. Altcoins fared worse, with XRP, BNB, and Solana losing 6% to 10%. The market's Fear and Greed Index hit 34, underscoring pervasive fear among investors.

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