The crypto market started the new week on a bleak note as prices of digital assets experienced a sharp decline. This downward trend has resulted in a significant number of liquidations, leaving tens of thousands of investors grappling with losses during this challenging period.

The intensity of the liquidations quickly escalated when Bitcoin lost its support above $29,500 and dipped to the low $29,000 range. Consequently, a substantial number of traders experienced swift losses, triggering a significant surge in liquidation volumes.

Based on data from Coinglass, over 45,000 crypto traders suffered losses due to market fluctuations in the past day. Notably, the majority of liquidations affected long traders. The data tracker website reveals that long liquidation volumes accounted for an overwhelming 86.38% of the total liquidations, amounting to over $100 million within the 24-hour timeframe.

While Bitcoin contributed significantly to the liquidation numbers, other cryptocurrencies like Dogecoin also witnessed substantial liquidation volumes during this period. However, those who held short positions on DOGE suffered the most as the meme coin enjoyed a recovery trend driven by Elon Musk’s support.

Currently, the market awaits the Federal Open Market Committee (FOMC) announcement scheduled for Wednesday. In anticipation of this event, there is likely to be minimal market movement in the coming day, as investors prefer to hold their positions until after the Fed’s announcement.

This implies that while recovery may appear improbable at the moment, a significant downturn is also unlikely. As trading activity stalls, cryptocurrency prices, including Bitcoin, are expected to remain within their current range until the conclusion of the meeting.

Nevertheless, volatility is expected to return depending on the outcome of the Fed’s announcement. The direction of the market will largely hinge on whether the Fed decides to hike or reduce interest rates. A reduction would be favorable for the market, while an increase may lead to a downward spiral in prices.

The recent crypto market plunge has resulted in substantial liquidations, leaving numerous traders counting their losses. With anticipation surrounding the upcoming FOMC announcement, market movements are expected to remain subdued until there is greater clarity on the Fed’s decisions regarding interest rates.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.