The crypto market faced a major shake-up, with over $450 million wiped out in liquidations within just 24 hours. A shocking $150 million of that was lost in a single hour as panic selling hit the market.

Top cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and XRP dropped more than 2% in just a few hours, sparking a wider selloff across the entire crypto space. Bitcoin’s price alone slipped from $116,700 to $114,700, despite optimism that the U.S. Federal Reserve could start cutting interest rates again this week.

The total cryptocurrency market cap fell below $4 trillion as other major coins like Solana (SOL), Cardano (ADA), Chainlink (LINK), and Hyperliquid (HYPE) plunged between 3% and 7%. Dogecoin (DOGE) saw an even steeper drop, falling over 10% in the past day. The Coinbase 50 Index, which tracks top crypto assets, also took a hit, sliding more than 2.5%.

AI-focused cryptocurrencies were hit especially hard after reports surfaced that China is investigating Nvidia for violating anti-monopoly laws. China’s market regulator found issues with Nvidia’s 2020 acquisition of Mellanox, claiming it didn’t meet agreed conditions. As a result, Nvidia stock dropped nearly 2% in early trading, and that decline dragged down AI-related tokens.

Worldcoin (WLD), one of the top AI coins, dropped over 6% in the last day and is now trading around $1.57. Its trading volume also dropped by 22%, showing a dip in trader interest. Other AI tokens like NEAR Protocol (NEAR), Render (RNDR), and Virtual (VIRTUAL) also fell more than 5%. However, some investors are beginning to “buy the dip,” betting these tokens will bounce back soon.

In total, nearly 170,000 traders were liquidated in the past 24 hours. Most of the losses came from long positions — with around $380 million in longs and $70 million in shorts wiped out. The largest single liquidation was a $9 million BTCUSD order on the exchange Bybit.

This all comes just days before an expected interest rate decision by the Federal Reserve. Markets are anticipating a 25 basis point rate cut on Wednesday, with a total of three cuts likely this year. However, analysts at JPMorgan have warned that stock markets — which are already near all-time highs — could pull back if rate cuts begin too soon. Weak job data and inflation concerns may also affect how fast the Fed moves.

Despite the current downturn, many crypto analysts believe Bitcoin still has upward potential. Bullish momentum, spot Bitcoin ETF inflows, and continued accumulation by large investors (also known as whales) could help push BTC back toward the $120K mark.

Well-known analyst Rekt Capital pointed out that Bitcoin closed last week above the key $114K level, suggesting that the correction phase might be ending and BTC could soon re-enter its re-accumulation range.

At the moment, Bitcoin is trading at around $115,137, down slightly by 0.5% in the past 24 hours. It hit a low of $114,684 and a high of $116,784 during the day. On a positive note, trading volume has surged by 40%, hinting at renewed interest from traders looking to take advantage of price swings.

Overall, while the crypto market is facing short-term turbulence, many experts believe this could be a temporary dip before a bigger recovery — especially if the Fed begins cutting rates and investor confidence returns.