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- Fed’s first rate cut since 2023 sparks $179M in crypto liquidations.
- Bitcoin holds support near $109K amid cautious investor sentiment.
- Market eyes liquidity recovery as QT ends by December.
Bitcoin (BTC) fell to around $111,000 late Wednesday, as traders digested the Federal Reserve’s first interest rate cut since 2023. The Fed trimmed rates by 25 basis points, setting a new range of 3.75%–4.00%, and announced plans to end quantitative tightening (QT) by December.
Initially, markets welcomed the move as a signal of easing policy, but optimism faded after Fed Chair Jerome Powell cautioned that the central bank is “not on a preset course” for further cuts. That hint of restraint rattled risk assets, including Bitcoin, which saw sharp intraday volatility.
Liquidations Surge After Misjudged Optimism
According to Coinglass, over $179 million in long positions were liquidated across major exchanges as traders overestimated the Fed’s dovish tilt. Bybit and Hyperliquid recorded the heaviest losses, reflecting excessive leverage ahead of Powell’s comments.
Data shows long traders accounted for more than 80% of total liquidations, underscoring a wave of misplaced confidence that quickly reversed as sentiment cooled.
Bitcoin now finds support near $109,000 and faces resistance around $117,500, with further downside risk toward $103,500 if current levels fail to hold.
Technical Outlook: Consolidation, Not Collapse
BTC’s daily chart suggests a neutral stance, with the Relative Strength Index (RSI) signaling consolidation rather than a breakdown. The 0.618 Fibonacci level near $117,594 remains the key upside barrier to watch.
Despite the short-term turbulence, analysts see potential for recovery as liquidity conditions improve. With QT ending and rates trending lower, the macro backdrop may slowly turn more favorable for crypto — provided volatility eases.
Outlook: Waiting for Clarity
For now, Bitcoin’s trajectory depends on whether the Fed’s cautious easing revives risk appetite. If ETF inflows rebound or U.S. data weakens, BTC could retest $126,000 in the coming weeks. Until then, the market appears to be resetting leverage and waiting for clearer signals from policymakers.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Acre Launches V2 Platform, Enabling Bitcoin Holders to Earn 14% APY (est.) from Self-Custody
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