Bitcoin Blasts Past $80K and a Fresh Short Squeeze Is On

In brief

• Bitcoin surged to $80,846, up 5.88% in 24 hours, after the Fed's rate hike came paired with an unexpectedly dovish forecast.
• The spike has led to more than $230 million in Bitcoin short bets being liquidated, and over $445 million across the entire crypto market.
• Technical indicators suggest a bigger move could still be building.

Risk assets caught a break this week that few were positioned for. The Federal Reserve raised interest rates by 25 basis points on Wednesday, its first hike since 2023, but the accompanying "dot plot" projected a median policy rate of just 4.1% through the end of 2027, implying only one more move rather than a sustained tightening cycle.

Crypto had extra ground to make up. The failure of the Clarity Act to clear a Senate procedural vote earlier in the week had already knocked Bitcoin below $75,000, and the relief rally that followed the Fed decision has been compounding through the week, with traders now eyeing a fresh run at $80,000 just days after the bill's defeat appeared to trigger panic selling.

But it’s a new day, and today’s trading session tells a different story: Across the crypto market, over $445 million in short positions have been liquidated, with Bitcoin alone accounting for more than half of that at $230 million.