Crypto traders are feeling the heat, as Federal Reserve kept the rates unchanged.
The Federal Reserve has decided to keep interest rates at 4.25% to 4.5%, without any cuts, despite President Trump’s pressures and the multitude of voices, both public and private, asking them to ease interest rates.
As per CoinGlass data, over 109,500 traders were liquidated in the past 24 hours, totaling $219.95 million in forced closures. The single largest liquidation was an ETHUSDT long position on Binance worth $2.98 million. Across all major exchanges, $38.07 million was wiped out in the last 4 hours alone, with shorts making up over 69% of the total. Binance led the charts with $16.69 million in liquidations, followed by Bybit and OKX. The overwhelming bias toward short positions — particularly on HTX (89.69%) and Hyperliquid (87.62%) — signals that traders were heavily leaning the wrong way in a volatile market.
Crypto assets like Bitcoin and Ethereum are considered “risk-on” assets — meaning they tend to rise when money is cheap and inflation is under control. Lower interest rates typically mean more liquidity in the markets, which helps drive up demand for everything from crypto stocks to tokens.
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But so far in 2025, the Fed hasn’t budged. In fact, during its last policy meeting in June, the Committee said it would “maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent,” signaling that inflation is still too high for comfort.
Trump fashion, the president took to Truth Social on Wednesday to pile on the pressure: “2Q GDP JUST OUT: 3%, WAY BETTER THAN EXPECTED! ‘Too Late’ MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!”
Bitcoin is still hovering around $117,786, while Ethereum is at $3,796. But don’t let that stability fool you.
Two Fed governors, Christopher Waller and Michelle Bowman, are being watched closely for potential dissent. Both have hinted at support for a rate cut. If they go against the consensus, it would be the first time since 1993 that multiple Fed officials have publicly dissented in a single meeting — and that could rattle markets.
Fed’s major decision leaves traders reeling from sharp losses first appeared on TheStreet on Jul 30, 2025
