Crypto Liquidations Broke $400M, $3B in USDT Entered Exchanges

2 hours ago by · 2 mins read

The long-awaited interest rate cut by the US Fed has arrived, and centralized exchanges saw impressive stablecoin inflows.

Cryptocurrency liquidations skyrocketed by over 100% following the US Federal Reserve’s announcement of a 25-basis-point rate cut, which triggered high volatility.

According to data from CoinGlass, the total amount of crypto liquidations reached $414 million ($190 million longs and $224 million shorts) over the past 24 hours.

Ethereum ETH $4 599 24h volatility: 2.2% Market cap: $555.19 B Vol. 24h: $42.83 B leads the chart with $115 million in liquidations ($67.6 million long and $47.4 million short) as the token recorded a selloff after briefly touching $4,640. The top altcoin is currently hovering at $4,570.

Bitcoin BTC $117 319 24h volatility: 0.6% Market cap: $2.34 T Vol. 24h: $58.58 B follows with $110 million in liquidations ($32.6 million long and $77.4 million short) after reaching a local high of $117,900.

Usually, the market would see strong short liquidations after a major event like the Fed’s rate cut. In this case, the long-over-short liquidations ratio, currently at 0.85, is very close, showing uncertainty among market participants.

Axel Adler, a crypto analyst on X, wrote that the Bitcoin price’s overheating signals “appeared ahead of the FOMC.”

He expects a short-term consolidation, between one and two weeks, before the market could gain bullish momentum “that would point to fresh long participation and raise the odds of a new ATH.”

$3 Billion in USDT Entered CEXs

The expectations of a Fed rate cut have been pouring positivity into the crypto market.

According to data from Coinglass, just over $3 billion in USDT USDT $1.00 24h volatility: 0.0% Market cap: $171.18 B Vol. 24h: $137.10 B has entered centralized crypto exchanges over the past seven days. On Sept. 14, Coinspeaker reported that Tether had been minting its stablecoin due to strong demand from investors.

Now the CoinGlass data confirms the demand.

Roughly 2.82 billion USDT flowed into Binance, the largest CEX in terms of trading volume, and one of the most liquid exchanges in the market.

Bybit received the second-largest inflow, worth $217.7 million.

The inflow of stablecoins into CEXs shows that investors have been preparing for a market-wide surge.

It’s important to note that Bloomberg’s ETF analyst James Seyffart hinted at the start of an altcoin season on Sept. 5.

This shows that the majority of investors might be looking at altcoins as their next investment.

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