The cryptocurrency market experienced substantial bullish activity following the long-anticipated rate cut by the U.S. Federal Reserve, resulting in heightened liquidations.
As reported by Coinglass, total crypto liquidations jumped by 46% in the last 24 hours, approaching nearly $200 million. Of these liquidations, a significant portion—amounting to $126 million—stemmed from short positions as the market surged.
Bitcoin (BTC) is at the forefront with $75 million in liquidations after a 2.9% increase in price. Currently, BTC is trading near the $62,000 level.
Remarkably, the largest individual liquidation, valued at $8.9 million in the BTC-USD pair, occurred on the Bybit exchange, according to Coinglass data. In total, more than 66,000 traders faced liquidations in the last 24 hours.
Ethereum (ETH) occupies the second position with liquidations exceeding $35 million as its price surpassed the $2,400 threshold.
Despite the rise in liquidations, total crypto open interest increased by 4% in the past day, now sitting at $58.7 billion.
A growing open interest typically indicates FOMO—fear of missing out—which could lead to further liquidations and significant price volatility. Currently, investor sentiment appears to be markedly optimistic.
The surge in liquidations followed the U.S. Fed’s announcement of a 50-basis-point rate cut at 18:00 UTC on September 18, marking the first rate reduction since March 2020.
In response, the global crypto market cap rose by 1.9%, reaching $2.23 trillion, according to CoinGecko data. The daily trading volume also exceeded $120 billion. Additionally, the U.S. stock market displayed bullish trends.
