Crypto Traders Take on $800M Liquidations as Fed’s Caution Sparks ‘Sell-the-News’ Reversal

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Crypto Traders Take on $800M Liquidations as Fed’s Caution Sparks ‘Sell-the-News’ Reversal Large clusters of long liquidations can signal capitulation and potential short-term bottoms, while heavy short wipeouts may precede local tops as momentum flips. By Shaurya Malwa Updated Oct 30, 2025, 6:27 a.m. Published Oct 30, 2025, 6:27 a.m. What to know : Bitcoin experienced significant volatility, falling to nearly $108,000 before rising above $110,000, with $817 million in leveraged futures liquidations. The Federal Reserve's 25-basis-point rate cut was followed by cautious remarks from Chair Jerome Powell, impacting market optimism. Analysts suggest that while short-term volatility persists, macroeconomic conditions may support Bitcoin's rise if liquidity increases as expected. 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. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . 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 market to cover losses. Large clusters of long liquidations can signal capitulation and potential short-term bottoms, while heavy short wipeouts may precede local tops as momentum flips. Traders can also keep track of where liquidation levels are concentrated, helping identify zones of forced activity that can act as near-term support or resistance. Data from CoinGlass showed roughly 165,000 traders were liquidated over 24 hours, including an $11 million BTCUSD long on Bybit, the day’s single largest hit. Hyperliquid led all venues with $282 million in liquidations, followed by Bybit’s $223 million and Binance’s $144 million, underscoring how overextended leverage remains in the market. “While the Fed cut interest rates as expected, Chair Powell's cautious press conference triggered a sharp sell-off in a 'sell-the-news' event after stating that the anticipated December cut is not guaranteed,” said Nick Ruck, director at LVRG Research in a note to CoinDesk. “ “While short-term volatility persists, the Fed's pivot to ending quantitative tightening in December signals a bullish undercurrent for risk assets like crypto, positioning Bitcoin and Ethereum for renewed upside as cheaper capital flows in over the coming months,” Ruck added. Meanwhile, Jeff Mei, COO at BTSE, said the dip reflected “cautious positioning across all markets.” “Inflation remains above target at 3%, and the Fed has limited room to maneuver until there’s clearer data amid the government shutdown,” Mei said. “With asset prices already elevated, further easing is unlikely unless economic weakness becomes more pronounced.” The liquidation wave comes just as investors digest improving geopolitical sentiment after the U.S. and China signaled progress toward a new trade accord. Despite near-term volatility, analysts say macro conditions are turning more favorable. If liquidity expands in line with the Fed’s timeline, Bitcoin could find firmer footing above $115,000 into November — assuming leveraged traders don’t get caught leaning too hard again. Markets XRP More For You OwlTing: Stablecoin Infrastructure for the Future By CoinDesk Research Oct 16, 2025 Commissioned by OwlTing Stablecoin payment volumes have grown to $19.4B year-to-date in 2025. OwlTing aims to capture this market by developing payment infrastructure that processes transactions in seconds for fractions of a cent. View Full Report More For You XRP Rejects $2.67 Breakout in Risk of Deeper Pullback as Fed Cuts Cause Bitcoin Slide By Shaurya Malwa 36 minutes ago XRP slid from $2.63 to $2.59 after a failed breakout above the $2.67 zone, with trading volume spiking to roughly 392.6 million tokens—about 658% above its recent average—during the rejection. What to know : XRP faced a failed breakout at the $2.67 resistance, leading to a price drop to $2.59 with a significant increase in trading volume. On-chain data indicates large XRP holders are selling, raising concerns about profit-taking amid high futures open interest. Traders should watch the $2.58 support level, as a break below could signal further downside, while a bounce could target higher resistance levels. 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