Bitcoin News Today: Fed's Uncertainty Spawns $617M Crypto Liquidations as Bitcoin Tumbles

Bitcoin's Price Plunge Triggers $617 Million in Liquidations as Fed Uncertainty Weighs on Markets

Bitcoin dropped to $93,000 on Monday, triggering $617.45 million in liquidations across crypto markets, with long positions accounting for $394.50 million of the losses. The sell-off, exacerbated by waning expectations of a December Federal Reserve rate cut, sent shockwaves through both cryptocurrency and traditional financial markets. Bitcoin's decline accelerated during Asian trading hours, with the largest single liquidation wiping out a $30.60 million position on Hyperliquid. The cryptocurrency's 0.85% drop over 24 hours pushed its price to $95,081, while the broader crypto market shed 0.9% to $3.31 trillion.

The turmoil extended beyond crypto, with global equities markets adopting a risk-off stance. Wall Street futures weakened following Friday's losses, and European benchmarks like the DAX and FTSE 100 fell 1.39% and 1.05%, respectively. Asian markets mirrored the pessimism, with Japan's Nikkei 225 dropping 1.77%. Analysts attributed the synchronized selloff to shifting expectations around Fed policy, as pricing for a December rate cut collapsed to 40% from over 60% just a week prior.

Federal Reserve Chair Jerome Powell's recent assertion that a December rate cut is "not a foregone conclusion" has intensified uncertainty. Several Fed officials, including Boston President Susan Collins, have signaled caution, citing insufficient data on inflation and labor markets amid government shutdown disruptions. This hesitancy has spooked investors in speculative assets like Bitcoin, which had previously rallied on accommodative policy expectations. Spot Bitcoin ETFs saw accelerated outflows as institutions reduced exposure, compounding downward pressure.

The selloff has erased $1 trillion from crypto markets since October's peak, with Bitcoin now trading below its 2025 realized price of $103,227-implying a 13% loss for the average buyer that year. Analysts warn of further declines, with Arthur Hayes, founder of BitMex, predicting a potential drop to $80,000–$85,000 amid deteriorating liquidity and macroeconomic headwinds. "The crypto market has set lower local lows, confirming the downward trend," said FxPro's Alex Kuptsikevich, noting a 24% decline from October's peak.

Fed minutes due Wednesday will shed light on policymakers' divided views ahead of the December meeting. While some officials, including Governor Christopher Waller, advocate for easing, others like St. Louis President Alberto Musalem urge caution. Markets currently price in a 51% chance of a December rate cut, down from 70% a week ago. A prolonged policy pause could further strain risk assets, as crypto and equities remain vulnerable to shifting monetary conditions.