Hawkish Fed Rattles Crypto as Bitcoin Nears $62,000, Liquidations Top $400 Million

Bitcoin has struggled to break decisively away from $64,000 while Ether trades around the closely watched $1,900 threshold, signaling limited conviction across digital-asset markets. Softer-than-expected U.S. producer inflation for July and record highs in major U.S. equity indexes have supported broader risk appetite, but crypto investors remain cautious. The Fear and Greed Index is still in fear territory despite improving from recent lows.

Bitcoin was hovering near $64,000 in the latest 24-hour period, while Ether eased to about $1,862. Crypto derivatives liquidations totaled roughly $203 million, with short positions accounting for nearly 67% as the market’s rebound forced bearish traders out of leveraged bets. The Fear and Greed Index recovered to 46 but remained below the greed threshold, leaving prices vulnerable to incoming U.S. economic data and further shifts in leveraged positioning.

Heavy selling in US semiconductor and artificial intelligence chip stocks has sent turmoil across global financial markets and into cryptocurrencies, underscoring the close correlation between technology shares and digital assets. Meanwhile, the US House of Representatives held a hearing on the CLARITY Act in New York in an effort to establish a regulatory framework for stablecoins. However, negotiations over the timetable for further review and ethics provisions have reached an impasse, leaving policy uncertainty hanging over the market and drawing close attention from investors.

A collapse in US-listed AI chip stocks and a surge in oil prices triggered cascading crypto liquidations on July 18, 2026. Bitcoin fell below $64,000, forcing more than 85,000 investors into liquidation within 24 hours, with total liquidations exceeding $330 million. Long positions accounted for as much as 84% of the total. The Crypto Fear and Greed Index also plunged to 25, indicating that investor sentiment had entered “extreme fear.”

US Labor Department data showed that nonfarm payrolls rose far less than the market expected in June, easing investor concerns that the Federal Reserve would maintain tight monetary policy. Such a shift in interest-rate expectations typically benefits risk assets and fueled demand for cryptocurrencies including Bitcoin and Ether.

After the data was released in July, Bitcoin briefly climbed above $62,000 to a new high for the month, while Ether topped $1,700. The sharp rally battered short sellers, with about 130,000 traders liquidated across the market within 24 hours. Liquidations exceeded $630 million, and the largest single liquidation reached $18.2 million.

Bitcoin and Ether are the crypto market’s two largest assets, and their prices often drive moves in altcoins and derivatives positions. Exchanges forcibly close highly leveraged contracts when their margin becomes insufficient, and cascading liquidations can deepen a decline. Liquidation totals therefore offer a gauge of market risk and investor sentiment.

In the early hours of June 10, 2026, Taipei time, Bitcoin broke below the $63,000 support level and fell through $61,000, while Ether tested $1,600. CoinGlass data showed that more than 120,000 traders were liquidated over 24 hours, with total liquidations reaching $380 million and the largest single order on Binance totaling $8.05 million. By June 25, BTC had fallen below $60,000 again, with liquidations exceeding $650 million and nearly 140,000 traders affected.

Bitcoin is highly sensitive to interest rates and US dollar liquidity, putting the Federal Reserve’s June rate decision in sharp focus as new Chair Kevin Warsh presided over the FOMC for the first time. US consumer prices were still up 4.2% year on year in May, limiting the scope for rate cuts and exposing risk assets to pressure from a potentially more hawkish policy stance.

Bitcoin climbed to about $67,300 on June 16 before retreating to $65,802 on the morning of June 17 and falling below the $65,600 threshold. Roughly $338 million in positions were liquidated across the crypto market over 24 hours, mostly longs, while the Fear & Greed Index dropped to 22, signaling extreme fear. With the FOMC decision due at around midnight on June 18 Taipei time, the market shifted into low-volume consolidation.

Bitcoin and the broader cryptocurrency market rely heavily on leveraged capital. When prices fall sharply, exchanges forcibly close positions with insufficient margin, amplifying the decline. The latest selling came ahead of the U.S. Federal Reserve’s interest-rate decision as risk aversion intensified. Consecutive net outflows from spot Bitcoin ETFs and MicroStrategy’s first Bitcoin sale also undermined investor confidence.

Bitcoin fell below $67,000 early on June 3 and briefly touched $66,316, pulling Ether, Solana, Dogecoin and other major cryptocurrencies lower. Marketwide liquidations reached $1.78 billion over 24 hours, with long positions accounting for about 90%. The concentrated unwinding of leveraged bullish bets sent market anxiety sharply higher.

Bitcoin has recently come under pressure from hawkish signals from the U.S. Federal Reserve, continued outflows from spot exchange-traded funds and geopolitical risks. The heavy concentration of leveraged long positions triggered cascading liquidations after the price broke below key support, further intensifying the market's “extreme fear” sentiment.

As of July 20, BTC had fallen as low as $72,582, a 14-day low, with about 152,000 traders liquidated for $755 million over 24 hours. Long positions accounted for more than 86% of the total. The market later plunged again to about $70,600, while the Fear and Greed Index dropped to 23 and ETH fell below $2,000.

Bitcoin and Ether are the crypto market’s leading assets, and sharp price declines can trigger forced liquidations on exchanges, amplifying selling pressure. Bitcoin’s slide toward $76,000 and Ether’s drop below $2,100 show that funds have yet to flow back into crypto in tandem with the Dow Jones Industrial Average’s record high.

As of July 19, preliminary data showed $53 million in liquidations across the market over four hours, with long positions accounting for 85%. Bitcoin later fell as low as $75,500, liquidating 64,000 traders for a combined $214 million. In the latest selloff, Bitcoin again dropped below $76,000 and Ether retreated to $2,000, while four-hour liquidations exceeded $134 million.

Bitcoin is highly sensitive to the U.S. Federal Reserve’s interest-rate path. Although markets welcomed Fed chair nominee Kevin Warsh’s pro-crypto stance, they were more concerned about his hawkish views on curbing inflation and shrinking the balance sheet. Profit-taking by institutional investors added pressure on risk assets.

Between Jan. 31 and Feb. 1, Bitcoin briefly fell below $75,000 and traded as low as about $74,000, with cascading liquidations pushing total crypto-market liquidations above $2.5 billion. Markets are repricing the timing of Fed rate cuts, but on-chain data show that large whale addresses continue to accumulate spot Bitcoin at lower prices.

Bitcoin fell below $80,000 as markets reassessed the Federal Reserve's rate-cut timetable after U.S. consumer inflation reached 3.8% year on year. Persistently high interest rates weigh on valuations for riskier assets, while concentrated leverage in crypto markets can trigger cascading forced liquidations when prices fall sharply.

On the day the CPI data was released, Bitcoin briefly slid to $79,400, later breaking below $79,000 and at one point plunging to $76,000. Ether also fell below $2,100. The initial selloff liquidated positions held by more than 100,000 traders, totaling over $320 million; liquidations subsequently climbed to $840 million over 24 hours.