Crypto Markets Reel as $700M Liquidated Amid FOMC Fears

Bitcoin Reverses Gains, Plunges to Ten-Day Low Amid Market Sell-Off

Bitcoin’s rally on Monday, which saw the cryptocurrency reach $65,600 on two occasions, has abruptly reversed. The digital asset has not only relinquished all its gains but has fallen further, hitting a ten-day low.

Most altcoins have mirrored Bitcoin’s decline, contributing to a surge in daily liquidations to approximately $700 million.

The recent market movements paint a stark picture. Bitcoin had held steady above $64,000 over the weekend before climbing to a multi-day peak of $65,600 on Monday. Attempts to breach this resistance level twice were unsuccessful. The second rejection proved particularly sharp, sending the asset down by nearly $3,000 in a matter of hours. Consequently, Bitcoin plummeted to $63,000, a level not seen since July 17.

Popular analyst CRYPTOWZRD commented on the recent downturn, suggesting that the largest digital asset has closed bearishly. The analyst emphasized the importance of Bitcoin maintaining its position above the current support level of $63,000, warning that failure to do so could lead to further declines to new local lows.

Ethereum, which had been the top performer yesterday with a surge to a two-month high of $1,980, has since shed $100 and is now trading well below $1,900. XRP has experienced a 4.5% drop, falling to $1.06 and slipping below the significant $1.10 support. Solana (SOL) has seen a similar percentage decrease, while HYPE has plummeted by 6%.

The significant market downturn has impacted over-leveraged traders, with more than 165,000 participants facing liquidation in the past 24 hours. The total value of liquidated positions has climbed to nearly $700 million on a daily basis, with Bitcoin and Ethereum accounting for the largest portions.

This morning’s market crash occurs just one day before the U.S. Federal Reserve is scheduled to announce its interest rate decision. The prevailing uncertainty surrounding a potential rate hike has negatively affected risk-on assets, including cryptocurrencies.