Bitcoin Slides After Massive Liquidations; Markets Watch Fed Guidance

Market snapshot

Bitcoin and major altcoins fell sharply overnight as large-scale liquidations hit crypto futures markets during a recent liquidation wave. Data from CoinGlass showed roughly $812.03 million liquidated in the last 24 hours — with $611.48 million in longs and $200.55 million in shorts — and $223.76 million liquidated in the last hour alone. BTC traded below $110,000, while ETH slipped toward the mid-$3,800s and XRP moved near $2.50. The total crypto market cap declined roughly 3% to about $3.75 trillion.

Key drivers

Two themes are dominating price action:

1) Forced liquidations and deleveraging. Rapid long-liquidations amplified downside momentum and increased short-term volatility across BTC, ETH and other leveraged instruments.

2) Policy and macro uncertainty. The Federal Reserve delivered a 25 basis-point October cut, a move that is generally supportive for risk assets, but Chair Powell signalled that a December cut is not guaranteed amid a US government shutdown and limited incoming data. That caution has created short-term policy uncertainty, raising the chance of further volatility in risk-on markets, including crypto. Related flows such as ETF outflows have also pressured liquidity.

Technical context (short term)

Market activity over the last 24 hours suggests a washout event driven by leverage removal rather than a structural shift in fundamentals. Traders should watch the following levels as reference for short-term setups:

- Immediate support: area around the recent low near $110,000 for BTC.

- Near-term resistance: the $115,000 area where prior longs were concentrated before the unwind.

Risks and opportunities

Risks:

- Further long-liquidation cascades could produce additional sharp downside and volatility.

- If Fed guidance remains ambiguous or if macro headlines turn risk-off, crypto could face renewed selling pressure.

Opportunities:

- Short-term trading and volatility strategies (scalp/mean-reversion) can capture rebounds after forced liquidations.

- A constructive US–China diplomatic outcome or a clearer dovish Fed path would likely restore risk appetite and support a bounce in BTC and ETH.

Practical trade ideas

- Conservative mean-reversion: scale into small long positions on confirmed intraday support with tight stops; avoid reusing high leverage until funding and open interest normalize.

- Volatility strategies: consider options or limited-risk structures if available, or pair trades (e.g., BTC/HODL vs. stablecoin exposure) to manage directional risk.

Why automation matters now

Periods of high liquidation and rapid price moves underscore the advantages of automated trading: systems can manage 24/7 execution, enforce pre-defined risk rules, and react faster than manual monitoring. Retail traders using automated trading solutions can implement scaled entries, trailing stops, and position-sizing rules to reduce emotional errors during volatile washouts. For example, specialized tools like a Bitcoin Trading Bot can help execute mean-reversion or risk-managed breakout strategies while you monitor macro developments.

Cross-market considerations

Keep an eye on equity and FX flows: the Fed cut and Chair Powell’s caveats have implications for USD strength and risk assets. A sustained USD weakness would generally be supportive for BTC and other risk instruments, while a USD rebound could reverse recent gains. Traders who also operate in forex markets may find opportunities to hedge crypto exposure or express macro views through FX pairs.

Conclusion

Last 24-hour liquidation events have driven substantial short-term volatility in BTC and other major crypto assets. While the Fed’s 25 bps cut is broadly supportive for risk markets, Powell’s caution and ongoing geopolitical developments mean uncertainty remains elevated. Active traders should prioritize risk controls, watch key technical levels near $110,000/$115,000 for BTC, and consider volatility-aware approaches.

If you trade these markets, consider combining disciplined trade rules with automated execution to manage around-the-clock moves. Explore tools such as the Trade Assistant Bot to implement automated trading strategies, improve order execution, and reduce emotional decision-making.