Crypto Market Slumps as $651M in Longs Liquidated Amid Hawkish Fed Signals

Key Facts

1Bitcoin price dropped by 4.2% since Tuesday afternoon amid a broader crypto market decline.

2$651 million in forced long liquidations occurred in the derivatives market.

3Market sentiment was hit by US ETF outflows and Fed minutes suggesting potential rate hikes.

Bitcoin price dropped by 4.2% since Tuesday afternoon, October 6, 2026, leading a broader decline across the cryptocurrency market including Ether and XRP. According to cryptoticker.io, the derivatives market saw $651 million in forced long liquidations, which significantly intensified the downward price pressure.

Market sentiment was negatively impacted by Federal Reserve minutes suggesting potential interest rate hikes and notable outflows from US-based spot ETFs. CoinGlass data showed that a total of $713.2 million in positions were forcibly closed in the 24 hours leading up to the morning of Thursday, October 8, 2026, with the vast majority consisting of bets on rising prices.