XRP, SOL, ETH, DOGE News: Traders Take on $800M Liquidations as Fed’s Caution Sparks ‘Sell-the-News’ Reversal
Nearly $817 million in crypto futures liquidations occurred after the Fed's rate cut was dampened by cautious commentary from Chair Powell.Summary
Bitcoin experienced significant volatility, dropping to nearly $108,000 before recovering above $110,000, following a session where nearly $817 million in leveraged futures liquidations took place, with long traders absorbing the majority of the losses. This market reaction was triggered after the Federal Reserve implemented an expected 25-basis-point rate cut, but Chair Jerome Powell's cautious remarks suggested that a December cut was not guaranteed, leading to a 'sell-the-news' reversal. Large clusters of long liquidations often signal capitulation and potential short-term bottoms. Analysts noted that while short-term volatility persists, the Fed's pivot away from quantitative tightening signals a bullish undercurrent for risk assets like crypto, potentially positioning Bitcoin and Ethereum for upside as capital becomes cheaper. However, others pointed to inflation remaining above target and limited room for further easing unless economic weakness becomes more pronounced.
(Source：CoinDesk)