Crypto Markets Face Broad Sell-Off Ahead of Federal Reserve Rate Decision

The cryptocurrency market experienced a significant downturn on November 14, as traders and investors prepared for the U.S. Federal Reserve's forthcoming interest rate decision. This event triggered widespread liquidations, disproportionately impacting long (buy) positions across the board.

$431 Million Liquidated in 24 Hours

Data from Coinglass revealed that a staggering $431.29 million—or approximately 581.5 billion KRW—in crypto positions were liquidated within the past 24 hours. Long positions accounted for the lion's share, with $319.75 million (around 430.9 billion KRW) wiped out, representing 74% of all liquidations. Meanwhile, short (sell) positions saw a comparatively lower liquidation of $111.54 million (about 150.6 billion KRW).

Ethereum, Solana, Dogecoin, and Bitcoin Hit Hard

On an asset-specific level, liquidation volumes highlighted key pain points in the market:

Ethereum (ETH) Leads Liquidations

Ethereum topped the liquidation list, with $56.89 million (approximately 76.83 billion KRW) forced out of the market. The asset extended its decline by 1%, with long positions making up an overwhelming 66% ($37.59 million or 50.67 billion KRW) of the liquidated value.

Solana (SOL) Sees $20.45 Million Liquidated

Following Ethereum, Solana registered a notable liquidation volume of $20.45 million (roughly 27.56 billion KRW), as the token slipped over 2%. Of these liquidations, long positions accounted for 62%, totaling $12.75 million (approximately 17.18 billion KRW).

Dogecoin (DOGE) Suffers a 4.39% Drop

Dogecoin faced a sharp 4.39% decline, with liquidations reaching $20.34 million (around 27.43 billion KRW). A massive 83% ($16.92 million or 22.81 billion KRW) of DOGE liquidations were attributed to long positions, underscoring traders' misplaced bullish expectations.

Bitcoin (BTC) Liquidations Cross $18 Million

Bitcoin witnessed $18.10 million (approximately 24.39 billion KRW) in liquidations, with long positions contributing significantly at 81%, equating to $14.70 million (roughly 19.81 billion KRW).

Trading Volume and Open Interest Dip

Broader market indicators also reflect the cryptocurrency market’s declining momentum. Overall trading volume dropped by 4.65% compared to the previous day, standing at $22.83 billion (around 30.81 trillion KRW).

Open interest—the total value of outstanding derivative contracts yet to be closed—also slid by 1.32%, settling at $222.55 billion (approximately 299.81 trillion KRW). This decline signals dwindling activity and reduced market engagement amidst growing uncertainty over monetary policy.

Investor Sentiment Shifts Back to Neutral

The Alternative Fear & Greed Index, a widely-followed metric for gauging investor sentiment in the cryptocurrency market, dropped to 53 points from 55 the prior day. This 2-point decline shifted sentiment from the “Greed” zone to a more cautious “Neutral” classification, reflecting hesitancy among market participants in light of macroeconomic pressures.

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As the cryptocurrency market grapples with heightened volatility ahead of the Federal Reserve's decision, traders continue to recalibrate their positions, particularly weighed down by aggressive liquidations of long positions. Whether market sentiment will stabilize remains contingent on broader economic developments and forthcoming regulatory signals.