Bitcoin Flushes Nearly $3K: The 'Sell the News' Event Is Here

The Fed cut rates, and Bitcoin sold off sharply.

To the uninitiated, this makes no sense. Lower rates are supposed to be bullish for crypto. But to veteran traders, this is the most predictable setup in the book: "Buy the Rumor, Sell the News."

After front-running the Fed all week, the market is now flushing out the latecomers.

The Flush: almost $3,000 in Minutes

The move was violent and instant.

As seen on the 15-minute chart below, Bitcoin didn't just drift lower, it collapsed.

Price plunged from the $92,400 consolidation zone down to the $89,000 range in a single vertical drop. The massive volume spike on that red candle confirms this wasn't just a lack of buyers; it was forced selling.

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The Signal: Longs Get Rekt

Why was the drop so sharp? Leverage.

Traders were piling into "Long" positions, expecting the Fed announcement to send Bitcoin to $100k immediately. When the price ticked down, it triggered a domino effect of margin calls.

The on-chain data confirms the damage.

According to Coinglass, over $283 million in Long positions have been liquidated in the last 24 hours. The 12-hour data shows that nearly $250 million of that vanished in this specific window.

When you see a sea of green on the liquidation heatmap (signaling long liquidations) combined with red on the price chart, it means the market is resetting. The "weak hands" who bought the top are out.

Bottom Line

This doesn't look like a market crash. It is likely a leverage reset.

The fundamental thesis hasn't changed, liquidity is improving and the Fed is dovish. But the market refused to reward the late longs who tried to chase the news.

Historically, these "Sell the News" flushes are short-lived. Once the over-leveraged positions are wiped out, the spot buyers usually step back in to pick up the discount.