BTC Liquidations Surge to $700M as FOMC-Linked Crash Hits BTC, ETH, XRP
Crypto liquidations spiked to nearly $700 million after a sharp Tuesday crash tied to uncertainty ahead of the US Federal Reserve’s FOMC interest-rate decision. The move erased Bitcoin’s Monday gains and pushed BTC to a 10-day low.
BTC liquidations accelerated as BTCUSD fell from about $65,600 (tested twice Monday) down to around $63,000, the first level seen since July 17. An analyst cited in the article said BTC needs to hold the $63,000 support zone; otherwise, BTC could slide to new local lows.
ETH led earlier but reversed: ETH peaked near a two-month high around $1,980, then dropped back below $1,900. XRP broke down as it slipped ~4.5% to about $1.06, losing the $1.10 support area. SOL also fell by roughly 4.5%, while HYPE dropped about 6%.
The article links the selloff to margin stress: more than 165,000 over-leveraged traders were liquidated within 24 hours, with daily liquidation value rising to ~$700 million. BTC and ETH were the main contributors, according to the narrative and CoinGlass-style liquidation framing referenced.
For traders, the key takeaway is that BTC liquidations can amplify volatility into the FOMC event window, raising the odds of fast stop-outs, liquidation cascades, and sharper intraday swings.
Bearish
The article describes a sharp risk-off move into the FOMC event, with prices falling and liquidation value spiking. BTC liquidations rising to around $700M and 165,000+ margin traders forced out typically create momentum downside: forced selling worsens order books, increases volatility, and can trigger additional stop/lever unwinds.
In the short term, traders may see choppy, high-volatility trading around $63,000 support as liquidation pressure clears. If FOMC guidance is hawkish, further upside attempts can be rejected quickly, extending the down move. If the outcome is dovish, the market can snap back because liquidation events often remove leverage and fuel short covering.
In the longer term, repeated break-and-fail around major supports after major macro catalysts (like rate decisions) often signals weaker demand and a higher chance of range-to-downtrend behavior until the market regains confidence. The cited analyst’s emphasis on holding $63,000 aligns with this bearish setup: losing that level would likely open room for fresh local lows.