A sudden crypto market rout erased nearly $3,000 from Bitcoin's price in hours on Thursday, triggering over $700 million in liquidations as traders positioned ahead of the Federal Reserve's interest rate decision. The sell-off pushed Bitcoin to a ten-day low of $63,000, while Ethereum slid below $1,900. More than 165,000 over-leveraged traders were caught off guard, with the total value of liquidated positions hitting roughly $700 million on a daily scale.
The Numbers
Bitcoin dropped from a multi-day peak of $65,600 to a ten-day low of $63,000 — a fall of nearly $3,000 in a matter of hours. Ethereum, which had been riding a two-month high of $1,980, lost $100 and slipped below $1,900. XRP fell 4.5% to $1.06, breaking below the $1.10 support level that had held for several days. SOL and HYPE also declined, with HYPE down 6%.
Why Now?
The crash came a day before the US Federal Reserve's interest rate decision. Uncertainty around a potential rate hike has been weighing on risk-on assets like crypto. The Fed's decision, due Friday, has kept traders on edge — and Thursday's move suggests some were already cutting positions rather than waiting for the announcement. The timing isn't great for bulls, who had been hoping to build on recent gains.
Analyst CRYPTOWZRD indicated that Bitcoin had closed bearish and that it is essential for BTC to remain above $63,000 to avoid new local lows. If the Fed delivers a hawkish surprise, that level could be tested again quickly. For now, all eyes are on the central bank's decision — and whether the sell-off is a one-day shakeout or the start of a deeper correction.
