Bitcoin suddenly surged above $94,000, ending the price movements that had been stuck between $88,000 and $92,000 for days. This sharp rise began abruptly on the night of December 9th and broke the resistance band that had formed throughout the week within minutes.
The Rise of Liquidations in Long and Short Positions Triggers a Surge
Looking at trading data, it is observed that just before the surge, there were significant inflows into large investors and wallets originating from cryptocurrency exchanges in the hourly timeframe.
The rapid accumulation of thousands of BTC by high-volume custody wallets indicates that large buyers with deep liquidity in the market have begun to take action.
The speed of the break indicates that the order books rapidly thinned after demand surpassed the resistance band. This development triggered a sudden structural change in the market, and as short positions closed in panic, momentum further strengthened.
Liquidation data confirms that there has been a sharp movement in the futures market. Over the last 12 hours, more than $300 million in crypto liquidations occurred, with more than $46 million attributed to Bitcoin and over $49 million to Ethereum.
The majority of the liquidated positions were on the short side. This situation indicates that the rise experienced is more of a classic short squeeze rather than a gradual trend.
As cascading stop orders were triggered, prices gained momentum vertically, and there was almost no supply left in the market.
Regulatory Support and FOMC Expectations Strengthen Investor Sentiment
An important policy update has come from the Office of the Comptroller of the Currency (OCC) just before the rise. According to the statement, banks will now be able to facilitate risk-free crypto transactions. With this decision, regulated institutions can play a bridging role in the market without directly holding crypto assets.
This change significantly expands institutional access. Additionally, the fact that the announcement came just a few hours before the break may have encouraged major investors who took positions.
As the Fed's interest rate decision approaches, traders are expecting a more comfortable liquidity environment in the market if a rate cut occurs.
Bitcoin is still hovering near its intraday peaks, volatility is high, and funding rates in derivative markets are being re-adjusted. The market will now closely monitor whether demand will be sustainable until the FOMC announcement and whether profit-taking momentum will cool off.
