The cryptocurrency market experienced a significant downturn after witnessing positive growth earlier in the week, with Bitcoin facing a sharp price drop on Monday night. This volatility triggered widespread liquidations exceeding $530 million within 24 hours, as reported by Coinglass. Major altcoins also plummeted, contributing to the overall uncertainty in the market environment. The rapid decline of Bitcoin futures alone reached nearly $200 million, while Ether products saw over $170 million in losses, driven partly by leveraged trading without sufficient collateral triggering automatic position closures. Dogecoin and Cardano experienced significant drops, down by up to 7%, while Solana, XRP, and BNB also witnessed notable declines averaging 5-6%. This swift correction caught many traders off guard, especially after the recent surge in Ethereum prices by as much as 40% and a brief rally in Bitcoin to $104,000. Global developments, including temporary tariff reductions in the U.S.-China agreement, also played a role in impacting market sentiment. The decrease in open futures positions by $1.2 billion on exchanges Monday emphasized investor caution regarding riskier trades. Market experts suggest that macroeconomic factors such as upcoming decisions from the U.S. Federal Reserve may significantly influence Bitcoin’s potential to reach new highs. Jeff Mei, Director of Operations at BTSE Crypto Exchange, highlights the importance of the Fed’s policy decisions and subsequent announcements, stating they will shape credit conditions and overall investment interests.