UPDATE: Fed Governor Waller remarks trigger crypto sell-off and liquidations
CIE News ·
Hawkish comments from Fed Governor Waller and rising Treasury yields accelerated crypto liquidations past $700 million, following a sharp Bitcoin drop below $83,000 on October 8.
Hawkish remarks by Federal Reserve Governor Christopher Waller and climbing US Treasury yields drove the recent crypto market sell-off, amplifying forced unwinds across major exchanges. As previously reported, Bitcoin (BTC) dropped below $83,000 on October 8, triggering a liquidation cascade exceeding $717 million across 1.25 million traders.
CryptoSlate reported that Waller cited market futures placing an 85% probability on at least one rate hike by December 2026, alongside an 80% chance of two increases by March 2027. Waller noted that the Federal Reserve could skip meetings rather than conclude policy tightening, while the 10-year Treasury yield rose to 5.305% and the 2-year yield reached 4.821% on October 8.
According to CryptoSlate, 24-hour crypto liquidations surpassed $1 billion following the remarks, with $930 million coming from long positions. BTC fell to an intraday low near $80,800 on October 8, with the next macro data point scheduled as the September CPI release on October 14.