Macro Instability and Federal Reserve Guidance Trigger $1.5 Billion Crypto Sell-Off

More than $1.5 billion in positions were liquidated as

(ETH) slipped beneath the $4,000 mark, resulting in the largest daily losses seen since late 2024. Data from Coinglass shows declined by 9% to $4,075, erasing nearly $500 million in leveraged long bets as traders were forced to meet margin requirements. (BTC) also dropped 3% to $111,998, though it managed a modest recovery by midday. This 24-hour liquidation event impacted over 407,000 traders, highlighting intense market pressure and widespread leveraged exposure across altcoins such as (DOGE), (SOL), and (ADA), which saw declines between 10% and 5% Ether (ETH), Dogecoin (DOGE) Lead $1.5B Liquidation Wipeout as … [ 2 ].

The sell-off intensified as major holders rushed to exit their positions. Whale wallets, such as 0x3c9E, offloaded 1,000 ETH for $4.19 million, deepening the price drop. Another large investor, 0x09D4, sold 56,569 HYPE tokens at a $103,000 loss, while BV2gzZ realized a $582,000 loss after dumping 307 million PUMP tokens. These moves reflected a broader pattern of leveraged trades unraveling under margin stress, with smaller investors bearing the brunt of the fallout Pump Coin Leveraged Bet: Machi Big Brother Faces $6.16 Million … [ 4 ].

Analysts pointed to macroeconomic instability as a key driver of heightened volatility. Nassar Achkar, CoinW’s chief strategy officer, observed that the Federal Reserve’s recent rate reduction failed to restore confidence, leaving the market susceptible to further liquidations. “Crypto’s direction will depend on upcoming economic indicators and signals from the Fed,” he commented, noting that defensive stances in derivatives markets indicate a sustained risk-averse environment. Investors are now watching U.S. PMI figures and jobless claims for insight into the central bank’s next moves Ether (ETH), Dogecoin (DOGE) Lead $1.5B Liquidation Wipeout as … [ 2 ].

This wave of liquidations also revealed the fragility of highly leveraged tokens. PUMP, a meme coin built on Solana, plunged 46.5% from its peak as private holders sold off to secure profits. Crypto influencer Machi Big Brother suffered a $6.16 million loss on his 5x leveraged PUMP position, while celebrity-backed tokens like Aster (ASTER) dropped 30% after MrBeast’s endorsement failed to counteract the broader downturn PUMP dips another 20%, leaving crypto influencer with … [ 5 ].

Traders in the derivatives market are now relying on liquidation heatmaps to spot potential reversal points and better manage risk. These visual tools, which use red to indicate short-heavy areas and green for long-heavy zones, have become essential for identifying crowded trades. For instance, the $4,000 level for ETH was a significant liquidation cluster, with deep red areas pointing to substantial short liquidations that could hint at a rebound. Still, experts warn that without a strong bullish catalyst, altcoins may remain suppressed as Bitcoin’s dominance continues to grow Ether (ETH), Dogecoin (DOGE) Lead $1.5B Liquidation Wipeout as … [ 2 ].