Crypto Market Drop Wipes Out $370M in Bullish Bets as Bitcoin and Ethereum Pull Back

On December 11, 2025, the cryptocurrency market took a sharp turn downward, erasing recent gains for Bitcoin (BTC) and Ethereum (ETH). In the past 24 hours, more than $514 million in leveraged positions were liquidated, with bullish long bets accounting for around $376 million—the bulk of the losses.

Bitcoin dropped about 2.6% to roughly $90,400, while Ethereum fell 3.7% to around $3,200. Other major coins like Solana, Dogecoin, and XRP also declined between 3% and 6%. The sudden sell-off wiped out roughly $150 billion from the total crypto market cap in a single session.

The main trigger was the Federal Reserve’s latest meeting. While it delivered an expected 25-basis-point rate cut, Fed Chair Jerome Powell signaled caution on future easing, projecting only one more cut in 2026—fewer than many had hoped. This more hawkish tone dampened expectations for loose monetary policy, prompting traders to unwind risky positions.

High leverage in the futures market amplified the move. Exchanges like Binance, Hyperliquid, and Bybit saw the heaviest liquidations, mostly from over-optimistic long positions. Thin year-end liquidity turned a modest pullback into a cascade of forced selling.

This event highlights how sensitive crypto remains to interest rate signals and global liquidity conditions. After a volatile 2025 that saw Bitcoin surge past $126,000 before retreating, the market is now digesting reduced expectations for aggressive rate cuts.

Analysts see the flush of leverage as potentially healthy in the near term, provided key support levels hold. Still, further caution is warranted until clearer signals emerge on monetary policy and economic data.