$400M Wiped Out in Hours as Bitcoin Crashes After FOMC and Warsh Speech

Bitcoin’s price is losing ground once again, as the asset was rejected at over $66,000 earlier today and dumped to $64,000 minutes ago, shortly after the conclusion of the latest FOMC meeting and the subsequent press conference by the new Fed Chair, Kevin Warsh.

Unlike what many expected when he replaced Jerome Powell, Warsh maintained a very hawkish tone during his speech, which caught investors by surprise.

Not The Easy-Money Chairman

DoubleLine Capital CEO Jeffrey Gundlach noted in an interview with CNBC that the new Fed Chair will aim for price stability instead of being the ‘easy money Chairman’ people thought.

“He is absolutely telling you that he plans on delivering on price stability. So that means we’re not going to have such easy money policy as everybody thought maybe Chairman Warsh would do back in the first quarter of this year when everyone was counting on rate cuts. He doesn’t sound like that today at all.”

Warsh’s hawkish speech came shortly after the US Federal Reserve maintained the interest rates unchanged for the fourth consecutive meeting.

$BTC Slides Further

Bitcoin’s price already dipped after the initial Fed decision, but its situation only worsened following the press conference. The asset had dropped from an intraday high of $66,400 to $65,000, but rebounded to $65,500 before it slumped again to $64,000 minutes ago.

Most altcoins have followed suit. Ethereum is down by 3% daily to under $1,740, BNB has lost the $600 support, while XRP has fallen further below the $1.20 line. Expectedly, these intense price moves in the span of just a couple of hours have impacted the liquidations.

Data from CoinGlass shows that the total value of wrecked positions in the past 24 hours is up to over $400 million, with almost half of those coming in the past 4 hours. Longs are responsible for the lion’s share, with $280 million daily. Moreover, $79 million out of the $82 million in liquidated positions in the past hour alone are from longs.

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Nearly 100,000 traders have been wiped out daily, with the largest liquidated position occurring on Binance. It was worth $5 million.