$200 million in crypto liquidated after Fed's 50bps rate cut

The cryptocurrency market experienced a significant surge following the U.S. Federal Reserve's 50-basis-point rate cut, resulting in large-scale liquidations across major assets. 

Data from Coinglass revealed that crypto liquidations increased by 46% over the past 24 hours, totaling almost $200 million. 

A majority of these liquidations were short positions, worth approximately $126 million, as the market turned bullish after the Fed’s decision. 

Bitcoin (CRYPTO:BTC) led the liquidations, with over $75 million in positions wiped out following a 2.9% price increase that pushed BTC to around $62,000. 

The largest individual liquidation, valued at $8.9 million, occurred in the BTC-USD pair on the Bybit exchange. 

Ethereum (CRYPTO:ETH) followed suit, with more than $35 million in liquidations as its price surpassed $2,400. 

Despite the surge in liquidations, open interest across the crypto market rose by 4%, reaching $58.7 billion. 

The increase in open interest, a key indicator of trader activity, could signal heightened fear of missing out (FOMO) among investors, potentially leading to even more liquidations and further price fluctuations. 

In total, over 66,000 traders were liquidated in the past day as a result of the market’s bullish momentum. 

Investor sentiment improved as the global cryptocurrency market cap rose by 1.9%, reaching $2.23 trillion, according to CoinGecko. 

Daily trading volume also saw a boost, exceeding $120 billion. 

The Federal Reserve’s 50bps rate cut, announced at 18:00 UTC on September 18, was the first since March 2020. 

This move contributed to positive movements not only in the crypto markets but also in the U.S. stock market, where a similar bullish trend was observed.