Bitcoinās sharp fall to $107K following the Federal Reserveās 25 bps rate cut has sent shockwaves through the crypto market ā triggering one of the biggest liquidation events of 2025.
In the past 24 hours alone, more than $1.1 billion in leveraged long positions were wiped out, as traders heavily bet on an immediate rally after the Fedās announcement. Instead, the market reversed sharply, liquidating overexposed positions and draining liquidity across exchanges.
This pattern isnāt new. Historically, FOMC weeks often bring volatility, where Bitcoin tends to fake out traders before resuming its main trend. Analyst @CrypNuevo noted that the move is āa simple retracement to balance out recent inefficiencies,ā suggesting the broader uptrend remains intact.
However, not everyone is optimistic. Some market watchers caution that if equities start to pull back, Bitcoin could mirror the move with a 20ā30% correction, similar to previous macro downturns.
Yet, every deep washout this year has eventually paved the way for strong accumulation and recovery rallies. With ETF inflows steady, the Fed entering an easing cycle, and global liquidity conditions improving, many traders believe the stage is already set for another explosive rebound.
š Bottom line: The shakeout might be painful ā but history says it could also be the perfect setup for Bitcoinās next big move.
