Bitcoin has significantly surpassed the $94,000 level. It has ended a period of stagnation that lasted for several days, fluctuating within a narrow range of $88,000 to $92,000. This breakout occurred suddenly on December 9. It accelerated within minutes, breaking through the resistance that had been holding the market down for nearly a week.
The increase in whale purchases and short liquidations is a driving factor for the surge.
According to trading data, the influx of funds into large institutions and exchange-related wallets concentrated in the hour before the market surge.
Multiple custody-type addresses with high trading volumes have accumulated thousands of BTC in a short period, suggesting that large liquidity buyers were ahead of the surge.
This sharp breakout indicates that buying demand broke through the upper resistance, causing the order book to thin out quickly. Shortly thereafter, the market structure rapidly shifted, with shorts closing positions under pressure, and momentum strengthened.
The liquidation data also supports that the futures market actively absorbed this sudden change. In the past 12 hours, the total liquidation amount across cryptocurrencies exceeded $300 million, with Bitcoin accounting for over $46 million and Ethereum for more than $49 million.
Most of the liquidations are from short positions, indicating that this movement is a typical short squeeze rather than a sustained rise.
A chain reaction of stop orders was triggered, and with almost no counter-supply, the price increase accelerated rapidly.
Regulatory support and FOMC expectations are boosting sentiment.
This surge occurred shortly after a notable policy update from the Office of the Comptroller of the Currency (OCC) in the United States. The agency approved risk-free principal transactions for financial institutions, allowing regulated entities to facilitate the flow of cryptocurrencies without directly holding assets.
This policy shift is expected to expand access for institutional investors, and the fact that the announcement was made just hours before the surge may have supported positioning.
As the Federal Reserve's interest rate announcement approaches, traders are increasingly believing that if a rate cut is confirmed, liquidity will be eased.
As of the time of writing, Bitcoin is maintaining its daytime high. Volatility remains high, and in the derivatives market, the funding rate has been reset. Going forward, the market will focus on whether demand sustains until the FOMC announcement or whether profit-taking will slow down momentum.
