Bitcoin’s Wild Ride: Traders Get Reamed for $800M – Thanks, Fed! 😅

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Markets

What to know:

Oh, great, Bitcoin‘s doing its usual circus act – plunges to almost $108,000 like it’s auditioning for a soap opera, then soars above $110,000. And hey, $817 million in leveraged futures liquidations? Sounds like a bad divorce where the long traders get the shaft. Again. Typical Tuesday Wednesday Thursday, whatever day it is.

So the Fed chops rates by 25 basis points – yeah, we saw that coming, Jerry. But Jerome Powell steps up and pours cold water on the party, saying, “Hey, that December cut? Eh, not so fast.” Because nothing says “Party time!” like a guy named Jerome playing hard to get with interest rates. 😏

Analysts are out there pontificating that while we’re all riding this volatility rollercoaster, maybe macroeconomic whatever will make Bitcoin go vroom if liquidity hits like promised. Sure, and maybe I’ll stop obsessing over whether I locked the door.

Larry here – Bitcoin tanks to nearly $108,000 Wednesday, then yo-yos above $110,000 Thursday because, why not? Volatile session wipes out nearly $817 million in leveraged futures liquidations, with long traders getting the bulk of the losses. It’s like I bet on the Knicks again – leveraged and liquidated faster than you can say “Ayyyyy.”

This pullback hits right after the Fed’s expected 25-basis-point rate cut, but then Chairman Powell rains on the parade with his cautious BS about December not being a sure thing. “Sell-the-news”? More like “Sell-the-bullcrap” – thanks, Jerome, for keeping things exciting. 🎈💥

Liquidations, for the uninitiated ignoramuses like me who pretend to understand this stuff – when traders borrow money and positions go south, poof! The platform sells ’em off like overripe bananas. Automatic, efficient, and utterly soul-crushing. Especially if you’re the long-side loser in this comedy of errors.

Big long liquidations? Could signal capitulation and a bottom – or just another chance to buy the dip at the wrong time. Heavy shorts getting wiped? Might mean a top’s coming. Traders stare at levels like I’m half-watching the weather report – “Is it support or resistance? Eh, could go either way.”

CoinGlass tells us about 165,000 traders got liquidated in 24 hours – including an $11 million BTCUSD long on Bybit, the star of the show. Hyperliquid racks up $282 million, Bybit $223 million, Binance $144 million. Overextended leverage? In this market? Don’t be ridiculous – it’s practically underleveraged! 😂

“While the Fed cut rates as expected, Chair Powell’s cautious press conference sparked a sharp sell-off in a ‘sell-the-news’ event after hinting December’s cut isn’t locked in,” says Nick Ruck from LVRG Research. “

“Short-term volatility rules, but the Fed pivoting away from tightening in December screams bullish for risk junk like crypto – Bitcoin and Ethereum poised for upside as cheap money flows. Assuming we don’t all get liquidated first.” Right, Nick, assuming I don’t trip over my own untied shoelaces on the way to cash in.

Then there’s Jeff Mei from BTSE, calling the dip “cautious positioning across all markets.” Sure, because inflation’s stuck at 3%, Fed’s stuck in limbo with that government shutdown – it’s like trying to eat soup with a fork. No easing unless things get worse. Great plan! 🍵

All this liquidation drama as investors chew on U.S.-China trade chatter getting friendlier. Geopolitical sunshine – or just more smoke and mirrors?

Volatility bites now, but analysts hum that macro stuff’s turning rosy. If liquidity floods in per Fed plan, Bitcoin might chug above $115,000 into November. Fingers crossed leveraged traders don’t get eaten alive again. Otherwise, it’s another episode of “Why Did I Even Log On?” starring yours truly. 😜

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2025-10-30 09:53