Bitcoin Cracks $80,000, Ethereum, XRP Surge 4% on $170M Short Liquidations

Bitcoin (CRYPTO: BTC) has reclaimed $80,000 as Ethereum (CRYPTO: ETH) and XRP (CRYPTO: XRP) shot up 4%

Market commentator Bull Theory posted on X that over $170 million in shorts were liquidated in just 60 minutes and $130 billion added to the total crypto market cap in 24 hours.

The Wolf of All Streets podcast host Scott Melker said Bitcoin holding at $78,000 through a rate hike and the CLARITY Act’s defeat was itself the signal to watch.

“Bitcoin’s up 32% this quarter and nobody’s even paying attention,” Melker wrote, pointing to exchange collapses and heavy selling that failed to move price lower. 

“I told you in my opinion that we had likely bottomed because bad news stopped mattering,” he added.

Meanwhile, popular market commentator Ash Crypto pointed out that the Fed will inject $16.5 billion into the economy starting Friday, with liquidity hitting markets over three consecutive weeks.

Under the New York Fed’s schedule, the central bank plans roughly $15.6 billion in Treasury bill purchases between Sept. 15 and Oct. 14, split across five operations. 

The first settled Sept. 18, with the rest continuing through mid-October.

It is worth noting these are reinvestment purchases, not new quantitative easing. The buys replace principal payments from maturing agency debt and mortgage-backed securities rather than expanding the Fed’s balance sheet outright.