Bitcoin Soars to New All-Time Highs as Fed Goes Dovish—$500M Liquidated in Crypto Carnage

Crypto markets just got whiplash—again. Bitcoin smashed through record highs as the Fed hinted at rate cuts, triggering a $500 million liquidation bloodbath across leveraged positions.

When the music stops... The Fed's dovish minutes sent risk assets mooning, but overzealous traders got caught holding bags when the market did what it does best—rekt overleveraged gamblers.

Wall Street's 'risk management' teams are probably still explaining how 'this time was different.' Spoiler: It never is. Meanwhile, Bitcoin just keeps eating their lunch.

Fed’s dovish minutes acted as a catalyst for riskier assets

Bitcoin and major altcoins saw a massive rally during the late American session on Wednesday, with BTC reaching a new all-time high of $111,999. Major altcoins, such as ETH, SOL, XRP and ADA, followed BTC’s lead and trade in the green, as shown in the CoinGecko chart below.

This rally was fueled by the Fed’s dovish minutes during the American trading session. The Federal Open Market Committee (FOMC) meeting minutes included a few officials who expressed the view that interest rates might decrease as early as July. At the same time, the majority of policymakers continued to have concerns regarding the inflationary pressures anticipated from US President Donald Trump's implementation of import taxes aimed at altering global trade.

The short-term dovish stance in the meeting minutes has triggered a risk-on sentiment, which supports the price rally in cryptos. According to the CoinGlass Liquidation Map chart, a total of 115,929 traders were liquidated in the last 24 hours, resulting in a total liquidation value of $533.20 million, with 87.9% of the positions being short. The largest single liquidation order occurred on Huobi (HTX) exchange, involving BTC/USDT, valued at $51.56 million. Bitcoin saw over $234.46 million in liquidation, while ethereum saw $152.44 million. 

Related news

• Breaking: Bitcoin hits record highs near $112,000
• Bitcoin Price Forecast: BTC steady around $108,000 as investors await FOMC minutes for Fed rate clues
• Cardano Price Forecast: ADA bulls eye for a rally as Bitcoin hits new record highs