Powell’s Rate-Cut Warning Triggers $817M Bitcoin Liquidations
Bitcoin liquidations totaling $817 million erupted on October 30, 2025, after Fed Chair Jerome Powell warned markets against betting on near-term rate cuts. The sudden spike in crypto volatility saw Bitcoin futures drop to nearly $108,000 before rebounding above $110,000, with long positions bearing the brunt of forced liquidations. Ethereum futures also felt the impact, as derivatives traders grappled with tightening U.S. monetary policy signals.
This wave of Bitcoin liquidations underscores the sensitivity of leveraged futures markets to Fed policy communications. Traders should closely monitor Powell’s remarks and funding-rate indicators, adjusting leverage to manage risk amid sticky inflation and a cautious interest-rate outlook.
By tracking real-time funding rates and Fed announcements, crypto traders can better anticipate market swings and safeguard positions against abrupt sell-offs.
Bearish
The forced liquidation of $817 million in Bitcoin futures underscores a short-term bearish impact driven by heightened crypto volatility and trader de-risking following Powell’s rate-cut warning. In the immediate term, leveraged long positions face continued pressure as Fed communications fuel sudden price swings. Over the longer horizon, market stability may hinge on forthcoming monetary signals; traders reducing leverage now could mitigate losses if the Fed eases later, but near-term sentiment remains negative. Historical patterns show that such rate-driven liquidations often lead to brief sell-offs before stabilization.