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Crypto Market Slides 1.4%, Over $500M Liquidated Ahead of Fed Decision

Bitcoin Dips Before Fed Rate Cut Decision as Ethereum and Dogecoin Lead Losses

  • Crypto market capitalization declined 1.4% in the last 24 hours to $3.89 trillion.
  • Over $500 million in leveraged bets were liquidated, with most losses affecting long traders.
  • Major cryptocurrencies like Ethereum (ETH) and Dogecoin (DOGE) led the declines while Bitcoin (BTC) also dipped.
  • Market participants expect the Federal Reserve to cut interest rates by 0.25 percentage points after its meeting.
  • Crypto-linked equities showed mixed performance ahead of the Federal Reserve’s announcement.

The global cryptocurrency market saw a 1.4% decline in the past 24 hours, with overall market capitalization dropping to around $3.89 trillion. Leading the drop were Ethereum (ETH) and Dogecoin (DOGE), followed by Bitcoin (BTC), as traders awaited the Federal Reserve’s upcoming decision on interest rate cuts.

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According to data from CoinGlass, more than $500 million in leveraged crypto positions were liquidated over the same period. Of this, about $360 million originated from long bets—investors who had expected prices to rise—while approximately $155 million came from short positions.

Ethereum fell by 2.8% and Dogecoin lost 2.7% in value within 24 hours. Bitcoin declined by 1.3%. Meanwhile, retail sentiment for Ethereum was described as ‘neutral’, while Dogecoin and Bitcoin were both viewed as ‘bearish’ by traders on select polling platforms.

Other notable price movements included Cardano (ADA), down 2.5%, Binance Coin (BNB), down 2%, and Solana (SOL), down 1.7%. XRP edged lower by 0.2%.

Market watchers are widely expecting a 0.25 percentage point reduction in U.S. interest rates at the conclusion of the Federal Reserve’s two-day meeting. The CME FedWatch Tool indicated a 99.9% probability of a quarter-point cut. A recent poll showed that 61% of retail traders predict a 25 basis-point cut, 19% see a larger cut, and 20% expect no change. Investors are also awaiting comments from Federal Reserve Chair Jerome Powell for indications of future monetary policy shifts.

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On the equities side, shares of MicroStrategy (MSTR), the main corporate holder of Bitcoin, increased 0.19% prior to market open. Bitmine Immersion Technologies (BMNR), a digital asset firm backed by Ethereum, fell 1.1%, and Coinbase (COIN) rose 0.2%. For more information on recent market movements, see CoinGlass data.

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