Crypto Market Sell-Off Wipes Out $787M in Liquidations

The cryptocurrency market witnessed a sharp sell-off, leading to a staggering $787 million in liquidations across various digital assets. According to CoinGlass data, Dogecoin (DOGE) was one of the hardest-hit assets, with $29 million liquidated in the past 24 hours alone.

Bitcoin and Altcoins Face Downturn

The sell-off was triggered by macroeconomic concerns and widespread profit-taking amid uncertainty about the Federal Reserve’s stance on interest rate cuts. Bitcoin, which briefly dipped as low as $98,698 on Thursday, pulled the broader crypto market downward.

Dogecoin’s price tumbled by 6.05%, trading at $0.365 after reaching intraday lows of $0.34. Liquidation data reveals that:

• $24.59 million in bullish bets (long positions) on Dogecoin were liquidated.
• $5.93 million in short positions also faced liquidation losses.

Federal Reserve’s Impact on Risk Assets

The sell-off was amplified by the Federal Reserve’s cautious outlook on interest rates. While the Fed delivered a 0.25% rate cut, lowering its key rate to 4.25%-4.5%, Chair Jerome Powell emphasized the need for further progress on inflation before committing to additional rate cuts.

At the post-meeting news conference, Powell signaled that the Fed may only implement two more rate cuts in 2025, far fewer than markets had previously anticipated. Lower rates typically increase demand for speculative investments, including cryptocurrencies. However, the hawkish tone spooked investors, driving selling pressure across markets.

Market-Wide Liquidations Hit $787M

The market downturn resulted in $787 million in crypto liquidations, with long positions accounting for the majority:

• $661 million in bullish bets liquidated.
• $125 million in short positions wiped out.

Dogecoin and Other Cryptos Under Pressure

Alongside Dogecoin, major cryptocurrencies faced steep declines:

• Bitcoin (BTC) fell below $99,000 after struggling to hold above the $100K mark.
• Ethereum (ETH) and other altcoins also saw significant losses as investors rushed to lock in profits.

The cryptocurrency market’s sharp sell-off underscores the impact of macroeconomic developments, particularly the Federal Reserve’s interest rate policy. With $787 million in liquidations and Dogecoin bearing a significant $29 million blow, investor sentiment remains cautious. As the Fed signals a slower pace of rate cuts in 2025, market participants will closely monitor both economic data and price action in the weeks ahead.