Crypto Traders Take on $800M Liquidations as Fed’s Caution Sparks ‘Sell-the-News’ Reversal
Bitcoin fell to nearly $108,000 on Wednesday, before zooming above $110,000 on Thursday after a volatile session that saw nearly $817 million in leveraged futures liquidations, with long traders taking the bulk of the losses.
The pullback came just hours after the Federal Reserve delivered a widely expected 25-basis-point rate cut, only for Chair Jerome Powell to dampen optimism with cautious comments suggesting December’s cut isn’t guaranteed.
Liquidations occur when traders using borrowed funds are forced to close their positions because their margin falls below required levels. On crypto futures exchanges, this process is automatic, as when prices move sharply against a leveraged trade, the platform sells the position into the open…
