More than $200 million in crypto positions were liquidated within 15 minutes as shifting expectations for the Federal Reserve’s next interest-rate decision pressured digital assets. The sell-off reflected crypto’s sensitivity to liquidity expectations and borrowing costs, while investors remained divided over whether policymakers will hold rates steady or raise them at the September meeting. U.S. Federal Reserve Governor Christopher Waller said on September 3 that inflation remains meaningfully above the Fed’s 2% goal. He said he would favor leaving the federal funds rate unchanged if August data confirm improving inflation, but would be prepared to raise rates if that improvement proves temporary. Stronger-than-expected August job gains added to concern that the Fed could maintain a hawkish stance for longer or resume raising rates. Bitcoin was reported to have dropped $1,900 in an eight-minute flash crash, while another market update said $60 billion was wiped from crypto and $200 million in long positions were liquidated. The next two-day FOMC (Federal Reserve interest-rate policy meeting) is scheduled for September 15-16, with upcoming inflation data and Federal Reserve officials’ comments expected to shape rate expectations and short-term crypto volatility.