Investors witnessed a decline in Bitcoin and cryptocurrency markets at the onset of the day due to interest rate cuts before the FED's decision. Rising political uncertainties in Europe and outflows in spot BTC ETFs contributed to the negative sentiment. Bitcoin's value dropped by more than 3% in the past day, reaching $67,000, while Ethereum, the primary altcoin, fell to $3,500.

Market analysts highlighted concerns over the FED's ability to uphold high-interest rates over the long term, leading to heightened selling pressure. Initially, expectations were limited to two FED interest rate cuts by the end of 2024; however, discussions now hint that a rate cut in September may be premature.

Geopolitical uncertainties in the USA and adverse macroeconomic indicators dampened investor interest in riskier assets like Bitcoin, resulting in a downward pressure on prices.

The market turmoil resulted in significant liquidations, with $185.3 million in leveraged positions liquidated in the past 24 hours. Long positions accounted for $160.1 million of the liquidations, while the remaining $25.2 million were from short positions. Over 69,000 investors faced liquidation, with the ETHUSDT pair on Binance witnessing the highest liquidation of $6.60 million. Bitcoin and Ethereum recorded liquidations of $49.5 million and $48 million, respectively, with Solana (SOL) and PEOPLE also experiencing sell-offs.

Despite the market bloodbath, the downturn presented investors with a buying opportunity at lower levels.