The recent surge in volatility triggered by the US Federal Reserve’s interest rate announcement resulted in approximately $48 million in liquidations within the Bitcoin market over a 24-hour period. As of the latest update on Friday, Bitcoin (BTC) was trading just below $43,000, following brief fluctuations during the volatile sessions on Wednesday and Thursday.

Bitcoin achieved a yearly high of $44,700 on December 8, and it currently trades approximately 4.7% below that level. Over the past seven days, BTC has experienced a 3% decline, but it remains up by over 17% on a 30-day basis, according to CoinGecko data.

The initial market reaction to the Federal Reserve’s announcement led to significant liquidations of leveraged derivatives positions on both the long and short sides. Coinglass data indicates that $35.4 million worth of Bitcoin shorts were liquidated on the day of the Fed’s announcement as the price initially surged higher due to a more dovish stance from the Fed.

However, bullish long positions were also affected, with $12.56 million worth of longs being wiped out as BTC experienced a sudden drop shortly afterward. In total, around $48 million in leveraged positions were liquidated on the day of the announcement.

It is noteworthy that these Fed-related liquidations followed the largest long liquidation event in the Bitcoin market on December 11, where $126.74 million in longs were liquidated within 24 hours. The liquidations coincided with a sudden crash in the spot price of Bitcoin, dropping from $43,800 to just over $40,000 within a few hours.