Tag: liquidation

  • Bitcoin Holds Above $64K as Traders Await Fed Rate Decision Amid $430M Liquidation Wave

    Bitcoin Holds Above $64K as Traders Await Fed Rate Decision Amid $430M Liquidation Wave

    Bitcoin traded near $64,300 on Wednesday as traders prepared for the Federal Reserve’s interest-rate decision. The asset recovered part of Tuesday’s decline after moving between $62,400 and $66,700 during a volatile period. The broader crypto market also gained, even after exchanges closed more than $430 million in leveraged positions.

    Moreover, the Fed’s July 28–29 meeting kept traders cautious. Markets largely expect officials to hold the federal funds target range at 3.50% to 3.75%. However, traders still assign roughly a one-in-three chance of a quarter-point increase. Inflation stays above the Fed’s 2% goal, while easing oil prices have reduced some immediate pressure.

    Bitcoin Price Holds as Fed Decision Nears

    Bitcoin gained about 1.5% over 24 hours and stayed above $64,000. The move tracked a 1.2% rise in total crypto market value. Ether advanced toward $1,913, while XRP and Cardano posted smaller gains. Jupiter led major decentralized finance tokens with a gain of nearly 6%.

    Traditional markets showed limited direction before the announcement. S&P 500 and NASDAQ 100 futures edged higher, while gold stayed above $4,000. Silver rose about 1.4%. These moves showed demand across several assets rather than a clear shift into one market segment.

    Bitcoin’s immediate range centers on support near $63,410 and resistance around $64,748. A move above resistance could open a retest of recent highs. A break below support would place $62,329 back in focus. Price action may stay sensitive to the Fed statement and press conference.

    Long Positions Lead $435 Million Liquidation Wave

    Meanwhile, CoinGlass data cited in the supplied report showed that exchanges liquidated 111,555 traders over 24 hours. Total liquidations reached $430 million. Long positions accounted for $324.03 million, while short positions represented $111.47 million.

    Ethereum recorded the largest asset-level total at $74.34 million. Bitcoin followed with $65.78 million. Binance handled $201.08 million of the closures, close to half of the market total. Hyperliquid followed with $93.93 million, while OKX recorded $53.89 million.

    The liquidation wave did not trigger a broad price collapse. Instead, Bitcoin and several large altcoins recovered as forced selling slowed. The total was far below the approximately $19 billion liquidation event recorded on October 10, 2025. However, the Fear and Greed Index stayed in the ‘Fear’ zone at 29.

    Derivatives Traders Keep Exposure Steady

    However, derivatives data showed traders had not added large new positions before the Fed decision. Total crypto open interest stayed near $113 billion, while trading volume rose 10% to $205 billion. The taker long-short volume ratio also stayed close to balance.

    Bitcoin open interest held near 750,000 BTC. Ether open interest declined for a fourth day to 14.14 million ETH. UNI moved against the wider trend, with open interest rising to 68.53 million tokens after its price gained about 5%.

    Options data showed stronger demand for Bitcoin downside protection. Put options at $62,000, $60,000 and $54,000 led Deribit’s 24-hour volume rankings. Ether calls ranked higher than puts. Meanwhile, 30-day implied volatility for both assets stayed near recent lows.

    The Fed is scheduled to release its decision at 2 p.m. Eastern Time, followed by a press conference. Traders will watch whether Bitcoin holds above $63,410 or faces rejection near $64,748 after the announcement.

  • Bitcoin Nears $65K Resistance Amid Softer Inflation Data and Surging ETF Inflows

    Bitcoin Nears $65K Resistance Amid Softer Inflation Data and Surging ETF Inflows

    Bitcoin traded near $64,600 on July 15 after hitting an intraday high above $65,100, gaining about 3% in 24 hours. The move brings the leading cryptocurrency close to a key resistance zone, fueled by cooler U.S. inflation data, robust ETF inflows, and short liquidations.

    Cooling Inflation Drives Bitcoin Higher

    The U.S. Consumer Price Index fell 0.4% in June—the largest monthly decline since April 2020. Annual inflation slowed to 3.5% from 4.2% in May, while core inflation remained unchanged and eased to 2.6% annually. The report reduced expectations for a near-term Federal Reserve rate hike, with market pricing dropping from 43% to 13%. Lower rate expectations supported risk assets like Bitcoin, as traders moved away from cash positions.

    Bitcoin’s correlation with the S&P 500 reached 86% during the move, indicating a broad macro reaction rather than a crypto-specific event. Fed Chair Kevin Warsh is addressing Congress this week, and the July policy meeting is scheduled for July 28–29.

    ETF Demand and Liquidations Add Support

    U.S. spot Bitcoin ETFs recorded $181 million in net inflows on July 14, led by BlackRock’s IBIT with approximately $139 million and Fidelity’s FBTC adding roughly $21 million. This fresh demand through regulated investment products coincided with rising prices that forced bearish traders to close leveraged positions. About $107.25 million in Bitcoin shorts were liquidated over 24 hours, adding upward momentum.

    The inflow data followed uneven institutional activity earlier in July. Traders are watching for sustained demand after the CPI-driven move.

    Bitcoin Price Faces a $65K Breakout Test

    Bitcoin now faces resistance at $65,000 and near its 50-day exponential moving average around $65,142. A daily close above that level could open a move toward $68,000, with the next resistance zone between $68,000 and $70,000. Analyst Michaël van de Poppe expects Bitcoin to reach $68,000 within one to two weeks, and possibly $75,000 to $80,000 in August, provided price clears nearby resistance.

    Order-book data shows notable selling interest near $67,000 and above, with buyers supporting between $63,500 and $63,800. A fall below $64,000 could expose $63,000, while a deeper break may bring $61,300 into focus.

    Oil prices add a near-term risk: Brent crude climbed to $85.42 after the U.S. restored a naval blockade on Iranian ports. Further supply disruption could lift inflation expectations and alter the rate outlook that supported Bitcoin’s rally.

  • Bitcoin Plunges to Multi-Month Low as Crypto Market Braces for Continued Pressure Since October 2024

    Bitcoin Plunges to Multi-Month Low as Crypto Market Braces for Continued Pressure Since October 2024

    Bitcoin has dropped to its lowest level in several months, falling below the $60,000 mark and sparking fresh panic across the cryptocurrency market. The world’s largest digital currency recently dipped into the $58,000 to $60,000 range, a threshold not seen since late 2024. This sharp decline has also dragged down other major cryptocurrencies, including Ethereum, Solana, and Binance Coin, as the broader market faces sustained headwinds.

    The crypto market has been under pressure for months, but the latest downturn has intensified concerns. Since October 2024, digital assets have struggled as investors grapple with economic uncertainty, waning market confidence, and heavy selling pressure. The total global crypto market capitalization has shed billions of dollars in a short period.

    Federal Reserve Policy Creates Market Pressure

    One of the primary drivers of Bitcoin’s recent struggles is the monetary policy of the U.S. Federal Reserve. With inflation remaining a persistent issue, the Fed has kept interest rates elevated. The latest inflation data shows the U.S. Consumer Price Index sitting just above 4.2% year over year, well outside the range expected by market participants.

    When interest rates are high, investment capital tends to flow out of riskier assets like Bitcoin and into traditional investments. Higher borrowing costs have reduced overall demand for cryptocurrencies over the past several months.

    Bitcoin ETFs Face Major Outflows

    Another key factor behind the recent crash is a sudden exodus from Spot Bitcoin exchange-traded funds (ETFs). These investment products had previously helped Bitcoin reach record highs by attracting significant institutional demand. However, recent reports indicate that Bitcoin ETFs have seen withdrawals totaling nearly $4.4 billion over multiple trading sessions. This has fueled fear, as institutional investors typically play a crucial role in market stability.

    Liquidation Shock Hits Crypto Traders

    The crypto market relies heavily on leveraged trading, where traders borrow money to place larger bets. This system can trigger sharp moves when prices fall suddenly. After Bitcoin broke below key support levels, crypto exchanges experienced forced liquidations across futures markets. Reports suggest that more than $2 billion worth of crypto positions were wiped out during the latest market crash.

    This cascading effect worsened the decline. Once automatic selling began, prices fell even faster. Ethereum also came under pressure, trading around $1,500 to $1,700, while Solana and several altcoins lost double-digit value within days.

    Large Institutional Selling Creates Fear

    Institutional investors have also added to the pressure. Attention recently turned to Strategy, the company known for holding massive amounts of Bitcoin under executive chairman Michael Saylor. Reports about Bitcoin sales from large treasury holders have sparked concern across the market, leading investors to question whether major institutions still have strong confidence in Bitcoin after months of weakness.

    Global Tensions Add More Uncertainty

    The global economic environment has become increasingly challenging. Rising tensions in the Middle East and concerns about higher energy prices have pushed investors toward safer assets such as government bonds and the U.S. dollar. While Bitcoin was once viewed as an alternative asset during uncertain times, recent market behavior shows it now trades more like technology stocks and other risky investments.

    Why This Matters

    This crash shatters the ‘safe-haven’ narrative, as Bitcoin mirrors highly volatile tech stocks under macroeconomic stress. With $4.4 billion exiting ETFs and extreme fear setting in, institutional support is facing its ultimate test since late 2024.

    Fear Dominates the Crypto Market

    Investor sentiment has turned extremely negative. The Crypto Fear and Greed Index recently entered ‘Extreme Fear’ territory, reflecting deep nervousness across the market. Bitcoin remains nearly 50% below its previous peak of $126,000 reached in October. Market analysts believe another drop is possible if Bitcoin falls below the critical support level of $59,000.

    For now, Bitcoin’s future hinges on Federal Reserve decisions, fresh ETF demand, market confidence, and overall economic conditions. Until these pressures ease, the cryptocurrency market may continue to face one of its toughest phases since late 2024.

    FAQs

    1. Why has Bitcoin fallen sharply recently?
    Bitcoin’s crash is driven by sticky U.S. inflation (~4.2%), prolonged high Federal Reserve interest rates, massive multi-session spot ETF outflows totaling $4.4 billion, and heavy cascading futures liquidations.

    2. What is Bitcoin’s current price range?
    Bitcoin has plunged into the $58,000 to $60,000 zone, marking its lowest level in several months and dragging major altcoins like Ethereum down with it.

    3. How much capital has exited Bitcoin ETFs recently?
    Institutional investors have pulled approximately $4.4 billion out of spot Bitcoin ETFs over a multi-day selling streak, severely damaging market liquidity and confidence.

    4. How severe was the liquidation shock during this crypto crash?
    Sudden price drops triggered a massive leverage squeeze, resulting in over $2 billion worth of forced liquidations across various crypto futures markets within days.

    5. Can Bitcoin prices fall further from here?
    Yes. Market analysts warn that if Bitcoin fails to hold its critical psychological support level at $59,000, it could trigger a deeper sell-off across the entire digital asset space.

  • Bitcoin Faces Risk of Brutal Liquidation Cascade If It Drops Below $59K

    Bitcoin Faces Risk of Brutal Liquidation Cascade If It Drops Below $59K

    Bitcoin recovered above $61,000 on Thursday after falling to nearly $59,000 in the previous session. The move followed long liquidations and spot ETF outflows. Analysts now question whether the decline has ended or another fall could follow.

    Analyst Flags Large Liquidation Zone Near $58,000

    Crypto analyst Reflection warned that Bitcoin could face a rapid liquidation cascade if price falls below $59,000. The analyst cited CoinGlass data showing more than $1.6 billion in long positions clustered near $58,000. Reflection described the concentration as unusually large, although the estimate can change as traders open and close positions.

    “In all my years trading, I’ve never seen this much long-side liquidity stacked in one single zone,” Reflection said.

    The analyst also claimed that traders who called the bottom early could face forced liquidations. Still, liquidation heatmaps show estimated risk areas, not confirmed price targets. Bitcoin fell to about $59,100 on Wednesday, while total crypto market liquidations reached nearly $984 million. Long positions made up more than 80% of the losses.

    ETF Outflows Add Pressure as Exchange Inflows Rise

    Institutional selling has weighed on Bitcoin. US spot Bitcoin ETFs recorded about $469 million in net outflows on Wednesday, marking a fifth straight session of withdrawals. Cumulative ETF inflows fell to $52.8 billion, their lowest level since July 2025.

    Meanwhile, about 7,600 BTC moved into Binance, according to CryptoQuant. The transfer was worth nearly $479 million at the time. Higher exchange inflows can increase available supply, although they do not confirm that every coin will be sold. The pressure pushed Bitcoin below $60,000 before buyers returned, turning the former support area into a key resistance level.

    On-Chain Data Raises Questions About Capitulation

    CryptoQuant analyst Darkfost said annual realized profits usually fall below realized losses near the peak of bear-market capitulation. Current figures show realized profits at about $305 billion, compared with realized losses near $198 billion. The gap suggests that the market has not yet reached that past-cycle condition.

    “It is precisely at that moment that capitulation reaches its bear market peak,” Darkfost said.

    The analyst argued that losses could rise further before Bitcoin forms a lasting bottom, though earlier cycles do not guarantee the same result. Analyst Sykodelic also noted that only 46% of Bitcoin supply remains in profit, matching the 2022 bear-market low. Bitcoin reached that level after a 52% decline this cycle, compared with a 75% fall in 2022.

    Bitcoin Price Outlook Focuses on $59,000 and PCE Data

    Bitcoin traded near $61,700 on Thursday after recovering from the low. The immediate support zone sits between $59,000 and $59,300. A sustained break below that range could expose $57,000, followed by the two-year low area near $54,000. The realized price sits slightly above $53,000, another level watched during deep market declines.

    On the upside, Bitcoin must reclaim $63,000 to weaken the current bearish structure. Traders are also watching the US Personal Consumption Expenditures inflation report on June 26. A hotter reading could raise interest-rate concerns and pressure risk assets. Softer data could support a recovery, although ETF flows, exchange inflows and leverage levels may remain the main short-term drivers.