Bitcoin has surged sharply over $94,000, ending several days of steady trading between $88,000 and $92,000. The price rally unexpectedly began on December 9th, accelerating in minutes and breaking the price range that had constrained the market for a week.
Valuation accumulation and short-side liquidations accelerate the breakthrough
According to trading data, a large number of investors and exchanges significantly moved assets to wallets just before the price rally.
Several high-volume storage wallets accumulated thousands of BTC in a short time, indicating that large buyers moved first before the 'squeeze' impacted the market.
The speed of the price rally suggests that order books thinned quickly as demand exceeded resistance. There was a rapid change in market structure, and sentiment strengthened as short positions were closed under pressure.
Based on liquidation data, the futures markets reacted aggressively to price movements. In the last 12 hours, over 300 million dollars worth of crypto liquidations were seen, with Bitcoin's share exceeding 46 million dollars and Ethereum's over 49 million dollars.
Most of the liquidations were targeted at short positions. This indicates a classic 'short squeeze' situation rather than a gradual trend formation.
The triggering of stop-loss orders accelerated the price increase vertically, as supply could not meet demand.
Regulatory support and FOMC expectations are driving the sentiment.
The rally was preceded by a significant statement from the U.S. Office of the Comptroller of the Currency, indicating that banks can engage in risk-free cryptocurrency trading. The decision allows regulated institutions to facilitate cryptocurrency transactions without direct asset custody.
This change increases institutional access to the cryptocurrency markets. The timing, just hours before the price rally, may have encouraged new positions in the market.
As the Federal Reserve's interest rate decision approaches, traders are expecting liquidity relief if rate cuts materialize.
Bitcoin remains close to the day's highs. Volatility is high and the derivatives market's financing is catching up. Markets are watching whether demand will continue after the FOMC announcement or if sentiment will calm down as profits are taken at the peaks.
