Bitcoin extended its decline following a volatile reaction to the latest Federal Open Market Committee meeting and the subsequent press conference from new Federal Reserve Chair Kevin Warsh. The market has now seen more than $400 million in liquidations within hours as prices weakened sharply.
Bitcoin was initially rejected above $66,000 earlier in the day before sliding rapidly to around $64,000 shortly after the Fed meeting concluded. Overall, the asset has lost more than $2,000 since the event ended.
Hawkish Tone Surprises Markets
Expectations that Warsh might signal a more accommodative stance were quickly overturned. Instead, his remarks carried a notably hawkish tone, surprising traders who had positioned for easier monetary policy.
Jeffrey Gundlach commented that Warsh appears focused on maintaining price stability rather than delivering the “easy money” policy some investors had anticipated. He added that the Fed chair’s messaging suggests tighter financial conditions rather than expectations of imminent rate cuts.
Warsh’s remarks followed the Federal Reserve’s decision to keep interest rates unchanged for a fourth consecutive meeting, a move that was already widely expected by markets.
Bitcoin and Altcoins Slide Further
Bitcoin initially dipped after the rate decision but saw deeper losses during and after the press conference. The price fell from an intraday high of $66,400 to $65,000, briefly rebounded to $65,500, and then dropped sharply again to $64,000.
Altcoins also moved lower across the board. Ethereum fell more than 3 percent to below $1,740, BNB lost its $600 support level, and XRP dropped further below $1.20.
These rapid price swings triggered a wave of liquidations across the market.
Data from CoinGlass shows that total liquidations over the past 24 hours exceeded $400 million, with nearly half occurring within a four hour window. Long positions accounted for the majority of losses, totaling about $280 million. In the last hour alone, nearly all liquidations were long positions.
Roughly 100,000 traders were liquidated in the past day, with the largest single liquidation on Binance valued at around $5 million.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
