Bitcoin Records 125% Liquidation Imbalance Following Powell's Inflation Address

Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. While the price of Bitcoin holds above $67,000 per token, a large-scale flush of leveraged positions is unfolding beneath the surface of the crypto market. According to CoinGlass , within just one hour of remarks by Jerome Powell, a liquidation imbalance of 125% was recorded. Long liquidations reached $2.86 million, while liquidations on the short side totaled $1.27 million. Advertisement Liquidation Heatmap, Source: CoinGlass What exactly did Jerome Powell say? The Fed Chair’s remarks clearly acted as the catalyst for this volatility. The key triggers behind the hourly squeeze can be divided into four points: First, the tariff shock. Powell explicitly stated that new tariffs could add between 0.5% and 1% to inflation. He described this as a one-off effect, but one that forces the Fed into a wait-and-see stance. Second, developments in the Middle East continue to pressure gas and gasoline prices, complicating a stable return to the 2% inflation target. The target itself remains unchanged. Powell confirmed that the Fed is effectively caught between supporting a weakening labor market and bringing inflation back to 2%. Finally, according to the Fed Chair, they are closely monitoring the private credit market. So far, there are no signs of a systemic crisis, but there is no rush to draw conclusions. In financial terms, this implies continued uncertainty in the near term. Despite Bitcoin showing gains in the moment, the dominance of long liquidations indicates that highly leveraged buyers were expecting a more dovish tone. Instead, Powell opted for a “wait and see” approach, outlined a range of risks and reaffirmed both the Fed’s markers and its inflation target. HOT Stories $50.4 Million XRP Transferred to Coinbase Ahead of Ripple Escrow Unlocking, Painful 96.8% Bitcoin Metric Highlighted by CryptoQuant, Is Saylor's BTC Buying Streak Finally Over?: Morning Crypto Report Elon Musk Posts Bitcoin Anime Girl, BTC Price Remains in Green In conclusion, Powell did not provide the market with grounds for an unchecked rally. The risk of stagflation remains. The current 125% liquidation impulse on BTC reflects a defensive market reaction to persistent uncertainty. Advertisement #Bitcoin #Liquidation Imbalance #Crypto Liquidations #Federal Reserve