Crypto Market Selloff: $150M In BTC, ETH, SOL, XRP, ADA Liquidated Ahead FOMC

Rupam Roy
January 31, 2024 Updated September 5, 2025
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Is A Fed Rate Cut Ahead? Experts Warn It May Escalate Market Bloodbath

Highlights

  • Investors selling crypto holdings ahead of crucial Federal Open Market Committee (FOMC) interest rate decision
  • Crypto market recorded $150 million liquidation with $110 million liquidation in longs positions
  • CME FedWatch Tool indicates a 98% probability of the Federal Reserve keeping interest rate unchanged
  • Bitcoin price fell to intraday low of $42,356

Investors are on the edge as the crypto market experiences a significant selloff just ahead of the crucial Federal Open Market Committee (FOMC) interest rate decision. Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Cardano (ADA) are under pressure, with Bitcoin struggling to maintain stability above the $43,000 mark.

Meanwhile, several analysts attribute this downturn to speculation surrounding the impending announcement from the U.S. Federal Reserve, which has the potential to sway not only the traditional financial markets but also the cryptocurrency landscape.

According to Coinglass, the crypto market saw a total liquidation of $150 million in the last 24 hours, with $110 million in longs liquidated. BTC, ETH, SOL, XRP, SUI, and ORDI longs bleed in the liquidation. In the past 24 hours, 57K traders were liquidated with the total liquidation of $78.97 million. The largest single liquidation order liquidation of ETH-USD-SWAP valued at $2.67 million happened on crypto exchange OKX.

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Investors Take Pause Ahead Of FOMC

As the crypto market faces a downturn, all eyes are on the FOMC decision, scheduled for later today. Market analysts suggest that the recent dip may be tied to speculation about the U.S. Federal Reserve’s announcement, which could have far-reaching consequences. The flagship cryptocurrency, Bitcoin, is currently grappling with volatile trading and struggling to stay above the $43,000 mark.

Meanwhile, the dip is likely a response to uncertainties about the Federal Reserve’s actions, with the potential to impact global financial markets, including cryptocurrencies. The market sentiment is tense as investors brace for the FOMC decision, with the CME FedWatch Tool indicating a 97.9% probability of the Federal Reserve maintaining the current interest rate. However, the real focus is on Fed Chair Jerome Powell’s speech, as investors seek clues about future monetary policy.

Despite recent signs of cooling inflation, it remains above the Fed’s 2% target range. Analysts believe that a dovish comment from the Federal Reserve could trigger a bullish run in both traditional and cryptocurrency markets. Conversely, any other move at the upcoming FOMC might exacerbate the ongoing market sell-off.

Notably, the Federal Reserve had held the interest rate steady at 5.25%-5.5% for three consecutive meetings in December 2023. Now, the market is anticipating three rate cuts of 75-100 basis points in 2024.

As reported by CoinGape Media earlier, BlackRock’s macro expert foresees potential Fed rate cuts in June, given the resilience displayed by the U.S. economy in recent PCE inflation, jobs, and retail sales data. On the other hand, Morgan Stanley’s Andrew Slimmon emphasizes Powell’s patience, stating that the strong economy allows the Fed to take a cautious approach and verify the true secular trend in inflation.

Also Read: Crypto Tax And TDS Reduction Key For Survival, Says CoinDCX And WazirX Founders

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How’s The Crypto Market Performing?

The global crypto market cap retreated 2.44% from yesterday to $1.63 trillion, while the last 24-hour trading volume surged 10.75% to $59.84 billion. Notably, the fear and greed index in the crypto market was at 57, suggesting a neutral sentiment in the segment amid FOMC speculations.

Meanwhile, the Bitcoin price was down 2.18% to $42,476.67 as of writing, while its trading volume soared 3% to $23.51 billion. Simultaneously, the second largest crypto by market cap, Ethereum price dropped 1.07% to $2,288.43 at the same time.

The BNB price lost 2.7% and traded at $302.14, while the Solana price decreased by 5.97% to $98.20 during writing. On the other hand, the XRP price was down 5.98% to $0.5047, and the Cardano price plunged 5.40% to $0.4987. The scenario in the meme coin segment was also gloomy, as witnessed by the dip in both Dogecoin and Shiba Inu prices.

Meanwhile, as uncertainty prevails ahead of the FOMC, the U.S. Dollar Index Futures rise slightly, while the 10-year bond yield dips, creating a complex backdrop for investors worldwide. The crypto market, already under pressure, is set for a potentially transformative moment with the impending FOMC decision.

Also Read: Binance To List Solana-Based Jupiter As Trading Volume Hits $630 Mln

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam's expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news. Rupam's career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.