More than $700 million in liquidations as BTC and ETH sink after Fed rate cut

More than 150,000 traders have gone bankrupt in the past day.

The US Federal Reserve did what many expected and cut key interest rates by 25 basis points earlier today.

While such a move is typically considered bullish for risky assets like crypto, the reality is that the immediate effect has been anything but positive.

But even before the FOMC meeting, many expected such behavior from bitcoin. Previous examples have shown that the cryptocurrency tends to correct initially after the US central bank cuts interest rates, as Merlijn The Trader noted.

Bitcoin history repeats itself until it doesn’t.

Every FOMC meeting this year produced one $BTC

pic.twitter.com/LqIqO145R2

— Merlijn The Trader (@MerlijnTrader) October 29, 2025

Bitcoin had settled around $112,000 and $113,000 earlier today, ahead of the FOMC meeting. After Jerome Powell validated the experts’ recommendations, BTC crashed hard, falling to just over $109,000.

BTC recovered over the next hour and currently sits above $110,500. According to some analysts, this decline could be possible were also to be expected due to the CME gap that formed and ultimately was after the weekend rally filledwhich could open the door for future profits.

The altcoins followed suit with their own corrections, with ETH falling below $3,850, XRP falling below $2.55, and many of the lower caps seeing even more significant declines.

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Preliminarily, the aftermath shows that daily liquidations have risen to more than $700 million, with more than half of those taking place in the last four hours. The number of bankrupt traders stands at over 151,000, while the largest liquidated position took place on Bybit and was worth $11 million.