Cryptocurrency market lost $ 820 million in just one day

Today, October 30, the price of bitcoin BTC $106,600.00 Mezo Wrapped BTC -2.98% Market capitalization $56.76 million VOL. 24 hours $3.12 billion dropped to $ 108,000 after US Federal Reserve Chairman Jerome Powell said that the December discount rate cut was not guaranteed. Against the backdrop of these comments, the cryptocurrency market reacted with a sharp drop, which led to large-scale liquidations of futures positions totaling $ 820.1 million.

Traders with long positions accounted for most of the losses — they lost $ 653.62 million, while short positions suffered losses of $ 166.48 million. In total, more than 164,000 traders were affected. The largest liquidations were observed in bitcoin ($ 365.44 million) and Ethereum ($ 188.56 million), according to the CoinGlass platform.

The largest single liquidation, amounting to $ 11 million, occurred on the Bybit exchange. The decentralized platform Hyperliquid (over $ 285 million), Bybit (almost $ 225 million), and Binance (over $ 146 million) were the leaders in terms of losses. This wave of liquidations came after the Fed announced an expected 25 basis point rate cut, but Powell’s cautious statements provoked a «sell on the news» effect.

According to Nick Ruck, director of analytical company LVRG Research, the market reacted emotionally to the Fed chairman’s rhetoric. Nevertheless, the expert believes that in the medium term, the tapering of the quantitative tapering program in December could be a positive signal for risky assets, including cryptocurrencies, and open the way for new growth.

At the time of publication, bitcoin was trading near $ 111,300, while the Fear and Greed Index was 34 points, indicating that fear sentiment prevailed among investors. The share of bitcoin’s dominance in the market reached 59.65%.