Over $700M in Liquidations as BTC and ETH Sink After Fed Rate Cut

The cryptocurrency market experienced massive turbulence following the Federal Reserve's recent rate cut decision, resulting in over $700 million in liquidations across major digital assets. Bitcoin (BTC) and Ethereum (ETH) led the dramatic selloff, triggering cascading losses that devastated more than 150,000 traders within a 24-hour period. This crypto market crash highlights the volatile relationship between traditional monetary policy and blockchain-based assets. The Fed's rate cut, typically viewed as positive for risk assets, paradoxically sparked widespread panic selling in the cryptocurrency space, affecting both spot and derivatives markets. The massive liquidation event underscores the high-leverage trading prevalent in crypto markets, where overleveraged positions can quickly spiral into forced closures during periods of extreme volatility. DeFi protocols and centralized exchanges alike witnessed significant outflows as traders scrambled to cover margin calls. This market correction serves as a stark reminder of cryptocurrency's inherent volatility and the risks associated with leveraged trading positions. The broader implications suggest increased correlation between crypto markets and traditional financial policy decisions, potentially reshaping how investors approach digital asset allocation strategies.