• Crypto analyst Joe Consort said on X that the recent Federal Reserve announcement could help Bitcoin and other risk assets rise.
• Other market watchers like Arthur Hayes have also indicated that crypto markets will recover once quantitative easing comes in.
• CoinGlass reported liquidations of around $495.65 million over the past 24 hours.

Cardano (ADA) led losses among major tokens in early morning trade on Thursday, as Bitcoin’s (BTC) fall dragged the rest of the market lower, and the derivatives markets saw big long-side liquidations.

This follows the Federal Reserve’s 25 basis point rate cut on Wednesday, which does not seem to have lifted markets amid a liquidity crunch. However, analysts think that a rally may be on the horizon.

As per CoinGlass data, total liquidations over the last day totalled $495.65 million, of which $125.94 million came from short positions and $369.72 million from long positions. Bitcoin’s price was trading at about $90,200, down 2.9% over the last 24 hours. Ethereum (ETH), on the other hand, while still above $3,190 and dropped 4.3% in the same time period. 

Long Positions See Max Pain

Liquidation data show that around $175.03 million in Bitcoin and $171.84 million in Ethereum were liquidated in the last 24 hours, showing that a lot of leveraged traders, mostly those who were long, had to leave the market because prices fell so quickly. This level of liquidation suggests traders were hoping for prices to rise in the market, but it went against them.

On Stocktwits, retail sentiment around Bitcoin continued to be ‘neutral’ territory, with ‘low’ levels of chatter, while retail sentiment around Ethereum trended in ‘bullish’, with ‘normal’ levels of chatter. 

Analysts Predict Rally

While the rate cut did not lift market sentiment, the Federal Reserve said it would start to expand by buying short-term treasury bills to add liquidity. This is a change from quantitative tightening (QT) to quantitative easing (QE). Joe Consorti, analyst and founder of Bitcoin‑backed home equity lender Horizon, said on X that “Bitcoin managed to climb from $16,000 to $126,000 as the Fed reduced its balance sheet for 3 years,” and if Bitcoin could rise under the strict monetary policy, with the recent Federal Reserve announcement, Bitcoin and other risk assets could rise. 

Market Pressure On Altcoins 

Cardano (ADA) saw the biggest plunge among major altcoins, falling nearly 10% in 24 hours to trade near $0.4228. On Stocktwits, retail sentiment around ADA continued to trend in ‘bullish’ territory, with ‘neutral’ levels of chatter over the past day.

Solana (SOL) also fell, going down 4.8% to about $130.65. SOL’s retail sentiment on Stocktwits continues to be in the ‘bullish’ zone with ‘low’ levels of chatter. 

Ripple (XRP) fell 2.9% to $2.01, and Binance Coin (BNB) fell 2.5% to $865.53. This was part of a larger trend of declines in the altcoin sector. XRP’s retail sentiment on Stocktwits remained in the ‘bearish’ zone, accompanied by ‘low’ levels of chatter among users. BNB’s retail sentiment on Stocktwits was in the ‘neutral’ zone, with ‘normal’ levels of chatter. 

Dogecoin (DOGE) also continued to go down, dropping 5.9% to $0.1376 as the memecoin market continued to see selling pressure. Tron (TRX) was an exception in the top 10, gaining 0.4% to trade at $0.2805 in the last 24 hours. Dogecoin’s retail sentiment was in the ‘bearish’ zone, as message volumes held at ‘normal’ levels over the past day. Tron showed a similar pattern, with sentiment sitting in the ‘bearish’ zone and chatter activity remaining at ‘normal’ levels.

Read also: US Banks Gain New Authority To Facilitate Bitcoin Trades As OCC Updates Rules

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