Key facts
- Bitcoin reached $80,846, a 5.88% increase in 24 hours.
- Over $445 million in crypto short positions were liquidated.
- Bitcoin short positions accounted for over $230 million of the liquidations.
- The Federal Reserve raised interest rates by 25 basis points and projected a median policy rate of 4.1% through 2027.
- Technical indicators like ADX (40.6), the 50-day EMA above the 200-day EMA, and RSI (63.3) suggest a bullish trend.
- The Squeeze Momentum Indicator has remained 'on' for 11 consecutive bars, indicating compressed volatility.
Bitcoin surged past $80,000 on Wednesday, marking a significant rally that triggered widespread liquidations in the cryptocurrency market. The digital asset reached $80,846, a 5.88% increase over 24 hours, following a surprisingly dovish forecast from the Federal Reserve accompanying its 25 basis point interest rate hike. This move has led to over $445 million in short positions being liquidated across the crypto market, with Bitcoin alone accounting for more than $230 million.
Traders had been anticipating a more aggressive tightening cycle from the Fed, but the projected median policy rate of 4.1% through the end of 2027 suggested a less hawkish stance than expected. This relief provided a much-needed boost to risk assets, including cryptocurrencies, which had previously seen declines. The failure of the Clarity Act in the Senate earlier in the week had pushed Bitcoin below $75,000, but the subsequent rally has compounded, with traders now eyeing further gains.
Technical indicators support the bullish momentum. The Average Directional Index (ADX) stands at 40.6, indicating a strong trend, with positive directional indicators confirming buyer control. The 50-day exponential moving average (EMA) has crossed above the 200-day EMA, a pattern known as a golden cross, signaling a broader bullish structure. The Relative Strength Index (RSI) is at 63.3, firmly in bullish territory without yet reaching overbought levels. The Squeeze Momentum Indicator has remained 'on' for 11 consecutive bars, suggesting compressed volatility that could precede a significant price move.