The cryptocurrency market experienced a significant bullish momentum following a long-anticipated rate cut by the U.S. Federal Reserve, leading to a surge in liquidations.

Data indicates that total crypto liquidations surged by 46% in the past day, nearing $200 million. Most of these liquidations, valued at $126 million, were short positions due to the widespread bullish movements across the market.

Bitcoin Leads Liquidations

Bitcoin (BTC) is at the forefront, with $75 million in liquidations following a 2.9% price increase. Currently, BTC is trading around the $62,000 mark.

“The largest single liquidation, worth $8.9 million in the BTC-USD pair, occurred on the Bybit crypto exchange.”

Over 66,000 traders have been liquidated in the last 24 hours, according to the latest data.

Ethereum Follows Close Behind

Ethereum (ETH) ranks second with over $35 million in liquidations as its price soared past the $2,400 mark. Despite the increased liquidations, the total crypto open interest rose by 4% in the last 24 hours, currently standing at $58.7 billion.

Increasing open interest often signals FOMO (Fear Of Missing Out), which can potentially increase liquidations and cause significant price fluctuations. Investor sentiment has notably risen in response to these developments.

Impact of U.S. Federal Reserve Rate Cut

The surge in liquidations came after the U.S. Federal Reserve announced a 50-basis-point rate cut at 18:00 UTC on September 18. This marked the first rate cut by the Fed since March 2020.

Following this announcement, the global crypto market cap increased by 1.9%, reaching $2.23 trillion. Daily trading volume exceeded $120 billion. Additionally, the U.S. stock market also experienced a bullish trend.

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