The price of Bitcoin surged past $94,000. Previously, it had been in a sideways market between $88,000 and $92,000 for several days. This breakout occurred suddenly on December 9 and accelerated within minutes, breaking through a range that had been restricted for almost a week.
Whale accumulation, short liquidation…driving the breakout
According to trading data, there was a large influx of funds into major institutional wallets and exchange-linked wallets in the hour leading up to the surge.
Several large custody wallets have amassed thousands of Bitcoins in a short period. This indicates that a liquidity-rich buyer entered the market first.
The strength of the breakout shows that the order books of each exchange thinned significantly upon breaking resistance. The market structure changed rapidly, and short positions were forcibly liquidated, greatly increasing momentum.
Looking at the liquidation data, the futures market actively absorbed this movement. Over the past 12 hours, the total liquidation amount in cryptocurrencies has exceeded $300 million, with Bitcoin accounting for $46 million and Ethereum for $49 million.
Most of the liquidations were short positions, indicating that this rise was more of a typical short squeeze rather than a gradual trend.
Sequential stop losses were triggered, leading to a vertical price expansion in a state where there is almost no supply resistance.
Regulatory support, FOMC expectations... Stimulating sentiment
This rally came just after the announcement of policy revisions by the Office of the Comptroller of the Currency (OCC) in the United States. The announcement recognized that banks could participate in risk-free principal cryptocurrency trading. This decision allows regulated financial institutions to facilitate cryptocurrency flows without directly holding assets.
This change expands institutional access to cryptocurrencies, and the fact that the announcement of this news was a few hours before the price breakout likely facilitated position entry.
As the Federal Reserve's interest rate decision approaches, traders expect that if a rate cut is confirmed, the liquidity environment will become more accommodative.
The current Bitcoin price is showing high volatility near its intraday peak, and the funding rates in the derivatives market are being newly adjusted. The market is paying attention to whether additional buying pressure will continue until the FOMC announcement or if profit-taking at the top will slow down the momentum.
