The cryptocurrency market suffered a sharp sell-off on Tuesday, triggering nearly $700 million in liquidations as Bitcoin (BTC), Ethereum (ETH), XRP, and other major digital assets fell ahead of the U.S. Federal Reserve’s upcoming interest rate announcement.
The sudden decline wiped out roughly $80 billion from the total crypto market capitalisation in just a few hours.
Bitcoin Slides After Failing to Break Resistance
Bitcoin entered the week with strong momentum, climbing to $65,600 twice on Monday after holding above $64,000 throughout the weekend. However, both breakout attempts were rejected, with the second triggering an aggressive wave of selling.
The flagship cryptocurrency subsequently fell nearly $3,000 within hours, dropping to around $63,000, its lowest level in roughly ten days.
Market analyst CRYPTOWZRD said Bitcoin’s latest daily close turned bearish and warned that maintaining support around $63,000 is now crucial. A sustained break below that level, the analyst suggested, could open the door to fresh local lows.
Altcoins Follow Bitcoin Lower
The broader altcoin market also reversed sharply after Monday’s gains.
Ethereum, which had rallied to a two-month high near $1,980, surrendered roughly $100 and slipped back below $1,900.
XRP declined around 4.5%, falling beneath the key $1.10 support level to trade near $1.06. Solana (SOL) posted similar losses, while HYPE recorded one of the steepest declines among major assets, dropping approximately 6%.
Leveraged Traders Hit Hard
The broad market downturn proved especially painful for leveraged traders.
More than 165,000 positions were liquidated over the past 24 hours, with total forced liquidations approaching $700 million. As expected, Bitcoin and Ethereum accounted for the largest share of those losses.
Markets Turn Cautious Ahead of FOMC
The sell-off comes just one day before the U.S. Federal Reserve is set to announce its latest monetary policy decision.
With investors uncertain about the central bank’s next move on interest rates, risk-sensitive assets including cryptocurrencies have come under renewed pressure as traders reduce exposure ahead of the closely watched announcement.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
