In the last few hours, the cryptocurrency market has witnessed a massive Bitcoin long liquidation, exceeding $112 million. This plunge pushed the BTC price below the psychological level of $90,000, marking a seven-month low. Uncertainty prior to the release of FOMC minutes, coupled with a sharp swing in rate-cut expectations, has triggered a wave of massive de-risking among traders.
Coinglass data confirms that the drop was not limited to the flagship asset but dragged down major crypto stocks and traditional stock indices. Companies like Coinbase Global, Bitfarms, and MicroStrategy recorded significant losses, reflecting a generalized risk-off sentiment in global markets. Furthermore, the S&P 500 and Nasdaq also turned negative, underscoring the interconnectedness between traditional finance and the volatile digital ecosystem.
FOMC factor and labor uncertainty drive panic
Anticipation of the October FOMC minutes, expected in barely an hour, was a key catalyst for the sell-off wave. In parallel, the US Bureau of Labor Statistics announced the cancellation of the October jobs report publication, as well as the September JOLTS report. This gap in crucial macroeconomic information has generated greater uncertainty and directly impacted expectations for interest rate cuts.
The CME FedWatch tool shows that bets for a December rate cut have dramatically dwindled, with nearly 70% of analysts expecting the Federal Reserve to hold interest rates steady. On the other hand, outflows from Bitcoin ETFs, such as BlackRock’s record $523 million sale, have deepened bearish sentiment. According to analyst Jacob King, institutional investors profited and exited, leaving retail investors in a vulnerable position.
Is Bitcoin heading towards $70,000?
As the Bitcoin price continues to drop, some analysts warn that the downside potential remains very much alive, projecting a possible descent to $70,000 in the near term, or even lower. The $75,740 level is shaping up as the next key support, followed by $56,160 and $52,820, according to Ali Charts. Persistent uncertainty and the lack of conviction from major players could accelerate a deeper correction in the digital economy.
To conclude, the current slump is perceived as a combination of macroeconomic jitters, negative ETF flows, and exacerbated retail panic. With the Bitcoin price trading at $88,977, down almost 5% in the last 24 hours, the market faces a critical period where stabilization will depend on the Federal Reserve’s next moves and renewed institutional investor confidence in the digital asset.
