The crypto market remained under pressure on Sept. 16 as Bitcoin traded near $75,000 ahead of the Federal Reserve's policy decision. BTC lost roughly 2%-3% during the session, while leveraged traders absorbed another large round of forced liquidations.

Liquidations occur when exchanges automatically close leveraged positions whose margin no longer meets requirements. Coinglass data showed approximately $634 million in positions liquidated over 24 hours, with long traders taking most of the losses. With the CLARITY Act, a digital-asset market-structure bill, having failed to advance in the Senate, the Federal Reserve now stands as the market's next major catalyst.

Crypto Market Crash Triggers $634 Million in Liquidations

Crypto markets recorded $667 million in liquidations as Bitcoin sold off following the CLARITY Act setback and concerns over a potential Fed rate hike. According to Coinglass data, long liquidations stand at $525 million, while short liquidations amount to $109 million. In the last 24 hours, a total of 113,141 traders were liquidated.

With long positions heavily concentrated, the decline triggered a significant leverage flush across the broader crypto market, reflecting the buildup of leveraged long exposure heading into the Fed decision. Forced closures of this kind can compound in fast-moving sessions, which is one reason liquidation figures draw close attention around major macro events. Market experts remain divided, however, on whether more pain lies ahead or whether the bottom is already in for BTC.

Analyst Ted Pillows stated that the Bitcoin price lost its 50-week exponential moving average (EMA), a long-term trend indicator often watched to gauge the broader market cycle, arguing that Bitcoin could drop toward the $70,000-$72,000 zone before any reversal.

FOMC: How Will Bitcoin Price React to a Fed Rate Hike?

Today's FOMC meeting is expected to draw close attention from financial markets. According to the CME FedWatch Tool, which derives its probabilities from pricing in fed funds futures, there is nearly a 93% probability of a rate hike. The market will focus on the Federal Reserve's forward guidance and on how policymakers view the path of interest rates.

If Fed Chair Warsh signals that the hike is a one-time move, the market could respond positively. However, if he places strong emphasis on reaching the 2% inflation target, it could be read as a signal that further rate hikes remain possible. Such a scenario could pressure stocks, cryptocurrencies, and precious metals, while also pushing bond yields higher.

Bitcoin's price remains near the lower end of its current trading range ahead of the FOMC meeting, according to analyst Daan Crypto Trades. The analyst noted that markets have priced in roughly a 90% chance of a rate hike, making Federal Reserve Chair Warsh's post-meeting remarks the key focus. In his view, a hawkish stance from Kevin Warsh signaling further rate hikes this year could weigh on risk assets. Conversely, if the dot plot — the Federal Reserve's summary of officials' individual rate projections — remains unchanged and the hike is seen as a one-time move, risk assets, including Bitcoin, could see some upside.

Where Is the Bitcoin Price Bottom?

Some market experts believe the Bitcoin bottom is already in and that little downside remains from current levels. Analyst Willy Woo noted: "I put the probability the bottom is in at 90%. We are in an early bull market structure based on long term investor liquidity returning."

Another analyst, CrediBULL Crypto, said Bitcoin's current decline should be viewed in the context of a broader market move rather than through short-term price action alone. He expects Bitcoin to form a bottom somewhere between current levels and a potential 10% further decline, which could be followed by a 200% upside.

With the Fed's statement, updated rate projections, and Chair Warsh's post-meeting remarks all arriving today, the guidance that follows — and how the liquidation data evolves afterward — will give the clearest read on how the leveraged market absorbs the decision.

This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency investments involve risk, and leveraged trading can result in substantial losses. Analyst forecasts do not guarantee future market performance.

Source: The Market Periodical