The price of Bitcoin (BTC) has experienced significant volatility in the past two days, mainly due to the Federal Reserve’s interest rate decision and the market’s changing attitude towards cryptocurrencies. The following is an analysis of the liquidation situation of Bitcoin contracts:

1. Federal Reserve Interest Rate Resolution: The Federal Reserve announced on September 18 that it would lower the target range of the federal funds rate by 50 basis points. This was the first interest rate cut since March 2020. This decision generally affects the market's view of risky assets, including Bitcoin. Bitcoin prices rose after the rate cut, which may have caused some leveraged traders to liquidate their positions, as they may have shorted in anticipation of a price drop.

2. Market volatility: According to data from CoinGlass, in the past 24 hours, 67,405 people liquidated their positions, with the total liquidation amount reaching US$198 million. This severe market volatility may be due to investor reactions to the Federal Reserve’s policies and uncertainty about the cryptocurrency market.

3. Technical analysis: From the perspective of technical analysis, the price of Bitcoin made an upward breakthrough after a period of sideways consolidation. This may have triggered some stop-loss orders, causing the price to rise further, causing some traders with short positions to liquidate their positions.

4. Market sentiment: Market sentiment plays an important role in Bitcoin price fluctuations. The Federal Reserve’s decision to cut interest rates may have increased market optimism for Bitcoin, especially in the current macroeconomic environment. This change in sentiment may have led to rapid market reactions, including liquidation events.

5. Trading Strategy: For traders who use leverage, managing risk is crucial. In the case of increased market volatility, excessive leverage may lead to liquidation. Therefore, traders need to pay close attention to market dynamics and adjust their trading strategies in a timely manner