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$565 million liquidated in 24 hours as Bitcoin falls below $76K
Crypto markets came under pressure on Wednesday as a cascade of macroeconomic events reduced risk appetite. Bitcoin fell to $75,472, down 2.30% over 24 hours. Ethereum dropped to $2,240, down 3.69%. XRP declined to $1.36, down 2.26%. Total crypto market capitalization decreased by 2.06% to $2.53 trillion, as $565 million in leveraged positions were liquidated across the market in a single day.
Long positions accounted for $370 million in liquidations, meaning traders betting on further upside were the primary victims. Short positions contributed $195 million, indicating that some bears also misjudged the speed and direction of the move.
Three events happening simultaneously
The Wednesday sell-off was not caused by a single event. Three separate macro shocks occurred in sequence and reinforced each other.
The Federal Reserve kept interest rates unchanged at Jerome Powell’s final meeting as chair, but the wording accompanying the decision became the real market driver. The Fed dropped its previous description of inflation as “somewhat elevated” and replaced it with a stricter assessment: “Inflation is high.”
This single-word change signals that rate cuts may be further away than markets had hoped, tightening liquidity conditions that historically supported risk assets.
At the same time, Brent crude oil rose to around $119.50 per barrel — the highest level since 2022 and a peak tied to tensions with Iran. The International Energy Agency described the situation as the biggest threat to energy security in history.
President Trump rejected Iran’s proposal to reopen the Strait of Hormuz, while U.S. Central Command confirmed preparations for a wave of strikes on Iranian infrastructure.
Where key assets stand
Bitcoin remains above $75,000 but has lost the psychological $76,000 level. Ethereum is trading around $2,240. Solana dropped to $82.44, down 2.81% on the day. Dogecoin fell by 3.36%. The Fear and Greed Index stands at 39, in the fear zone, reflecting caution rather than panic, as markets closely monitor developments in Iran and oil prices for the next directional move.
With the official end of the Powell era at the Federal Reserve and a new chair stepping in amid surging energy prices and escalating military tensions in the Middle East, the macro backdrop for the crypto industry in May has become more complex than it appeared just a week ago.
