Bitcoin rallies on Fed rate-pause signals, triggering a $415M short liquidation.
Macro & Markets ·
Bitcoin climbed above $80,000 Thursday, trading near $80,270 with a 3% gain over 24 hours, as Ethereum and XRP also advanced alongside broader U.S. stock indices. The move followed remarks from Fed Governor Christopher Waller, who signaled support for holding interest rates steady if inflation data continues to improve. Rate-hike odds for the Fed's September meeting fell to 50.4% from 63.2% the prior day, according to CME FedWatch data.
The price rally triggered significant liquidations among leveraged traders betting on lower prices. Over $415 million in short positions were liquidated across crypto markets in the past 24 hours, with more than $327 million of that occurring in a single hour. Rising prices forced short sellers to buy back positions at higher levels, amplifying upward momentum. The broader stock market also gained ground, with the Dow up 0.9% and the S&P 500 near 1%.
The move represents a sharp reversal from Fed Chair Kevin Warsh's hawkish Jackson Hole speech a week prior, which had pushed Bitcoin lower. Whether Bitcoin can sustain the $80,000 level remains unclear, as the asset has tested and failed to hold this price multiple times earlier in the year. The extent to which additional economic data may shift the Fed's actual September decision is also unresolved.