Crypto Market Bleeds Ahead of FOMC Meeting Minutes Today- Another Crash Or Recovery?

The crypto market tosses bulls out of the picture this week, as fear and bears take over investors’ trading decisions. Despite surpassing a $4T market cap earlier in the month and BTC’s ATH rally, the trends have completely changed today. Under the impact of which, $450M worth of liquidation position has been wiped out.

Crypto Market Crash Fuels $450M Liquidation

The Bitcoin’s slippage below $113k and the Ethereum declining to $4.2k mark resulted in a major series of liquidations in the crypto space, staining the market in red. CoinGlass data reveals the liquidation of a $450M position in the market today, affecting 122,096 traders.

In this Ethereum position leads the liquidation, losing $180.13M, followed by Bitcoin with $102.44 in liquidation. Other top altcoins, such as XRP ($17.84M), SOL ($14.92M), and DOGE ($10.91M), are also in the liquidation race, impacting global traders.

Notably, Ethereum’s dominance in the liquidation has been consistent for the last few days, since its recent uptrend has heavily influenced investors’ trading decisions. One individual who has turned $125k into $29.6M on ETH has lost it all again with this downtrend, reports Lookonchain.

This legendary trader went long on $ETH again but was liquidated in the market crash, losing $6.22M.

Starting with just $125K, he grew his accounts to $6.99M(peaking $43M+).

Now only $771K remains—4 months of gains nearly wiped out in just 2 days.https://t.co/aHuSEEQVhx pic.twitter.com/byQrsQGnOs

— Lookonchain (@lookonchain) August 20, 2025

Will FED Hint Rate Cut Today As Institutional Investors Continue Sell-Off

The broader crypto market is facing a correction ahead of the FOMC Meeting Minutes release today and Jerome Powell’s speech at Jackson Hole on Friday. Notably, investors are greatly cautious of their trading decisions while awaiting the Fed’s hint at potential rate cuts in September.

FOMC Minutes drop today at 3PM (ET).

PREPARE FOR VOLATILITY! pic.twitter.com/hnFCPabfzv

— Mister Crypto (@misterrcrypto) August 20, 2025

CME FedWatch tool, Polymarket, and others showcase strong odds of rate cuts next month. However, the U.S. PPI, tech revenue report, weekly job data, and much more can impact the Fed’s decision, creating uncertainty in the market.

A shift in investors’ sentiments was also noticed as the SEC postponed the XRP ETF decision to October. Even the launched ETFs witnessed significant outflows, led by the Bitcoin spot ETF with -$121.81M net flow on August 19. Ethereum also has the same result, with $196.62M outflows.

Profit taking, whale sell-off also played a significant role. Further down, the downturn may persist if the macro events bring further bearish trends this week.

Pooja Khardia

Pooja Khardia is a seasoned crypto content writer with 6+ years of experience in writing, including in blockchain, cryptocurrency, DeFi, and digital finance reporting. In her adventure journey, she is currently working with CoinGape Media and leading their Trending Section.

Here, she uses her expertise to deliver analytics, market insights, price predictions, and information on what’s trending in the crypto space, aiming to keep the crypto and web3 community updated with market trends and important insights.

Known for a user-centric and straightforward writing style, Pooja is passionate about making crypto easy and accessible. Her writing blends market research with storytelling, helping readers stay ahead in a fast-paced industry.

When not behind the keyboard, Pooja embraces her creative side through drawing and crafting. Connect with Pooja on LinkedIn or X.