The crypto market started out the new week on a low note with prices of digital assets across the space plunging once again. As a result of this, a significant amount of liquidations have taken place across the market, leaving tens of thousands of investors nursing losses during this time.

The crypto liquidations ramped up quickly as Bitcoin lost its footing above the $29,500 support and dropped down to the low $29,000s. As a result, a large number of traders lost their positions rapidly, leading to a significant spike in the liquidation volumes.

According to data from Coinglass, over 45,000 crypto traders suffered losses as a result of the market fluctuations in the last day. Given that the price of the likes of Bitcoin fell, long traders were mostly the victims of these liquidations.

As the data tracker website shows, of the more than $130 million in liquidations recorded over the single-day period, long traders accounted for the overwhelming majority at 86.38% of total liquidations. This means that long liquidation volumes were more than $100 million in this 24-hour time frame.

As expected, Bitcoin led the majority of liquidations, but the likes of Dogecoin always saw significant volumes during this time. However, where most of the market was seeing liquidations due to falling prices, traders who were short DOGE suffered the most. This is because the meme coin has been on a recovery trend fueled by Elon Musk’s support.

Right now, the market is anticipating the FOMC announcement that is taking place on Wednesday. As a result of this, there likely will not be much movement in the market for the next day. This is because investors will hold their positions in anticipation of the Fed’s announcement and not do anything else until then.

What this also means though is that just like there is a low possibility of recovery, there is also a low possibility of a downtrend. As trading stalls, so will the price of cryptocurrencies such as Bitcoin, causing the market to range in its current position until the meeting is concluded.

However, depending on the Fed’s announcement, volatility is expected to follow. Although the direction of the market will rely entirely on whether or not the Fed decides to hike interest rates or reduce them once more. The latter would be good for the market, while the former will more than likely lead to a fall in prices.

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