The post Low Trading Volume Intensifies Crypto Liquidation Risk appeared on BitcoinEthereumNews.com.

Key Points: Matrixport’s report highlights liquidation risk and volatility linked to Fed actions. Total liquidations reached $1.1 billion across major cryptocurrencies. BTC, ETH, and SOL experience significant price fluctuations. Matrixport’s analysis on September 23 highlights increased liquidation risk in the cryptocurrency market due to low trading volume and Federal Reserve rate-induced volatility. Major assets like BTC and ETH face liquidation pressures, prompting cautious risk management as historical patterns suggest potential volatility amid Federal Reserve decisions. Matrixport Report Flags $1.1 Billion Crypto Liquidations Matrixport’s recent analysis uncovers significant risks for crypto traders in a low-volume environment. Released on September 23, the report details the challenges of maintaining long positions amid potential market shifts, specifically pointing to increased volatility surrounding Federal Reserve actions and rising U.S. bond yields. Cryptocurrency market pressures are mounting as the Federal Reserve rate decisions contribute to a more volatile trading environment. The analysis warns that technical breakdowns could lead to a wave of stop-loss orders and save traders from massive deleveraging moves, evident in the $1.1 billion liquidated positions. Community reaction echoes concerns over these risks. CryptoQuant analyst Axel Adler Jr. described liquidation risks as “moderate,” however, indicated continued downward pressure. Statements by Arthur Hayes, BitMEX Co-Founder, suggest optimism post liquidity drain from the U.S. Treasury General Account, indicating potential recovery. “The replenishment of the United States Treasury General Account (TGA) is nearing completion, with a target of $850 billion. Once this liquidity drain is completed, the market situation where the cryptocurrency market only goes up and never goes down can resume.” — Arthur Hayes, Co-Founder, BitMEX Bond Yields and Federal Actions Spur Crypto Volatility Did you know? The rise in U.S. bond yields often portends increased volatility in cryptocurrency markets, illustrating a recurring pattern seen during prior Federal Reserve interest rate cycles. As of 07:06 UTC…

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Filed under: News - @ September 23, 2025 7:21 am