Bitcoin ($BTC) intraday broke above $94,000... Short positions worth $4 billion were liquidated due to expectations of a Federal Reserve rate cut.

The price of Bitcoin (BTC) surged 3.5% in a single day, breaking through $94,600 (approximately 138.77 million KRW) during intraday trading. As the Federal Open Market Committee (FOMC) is set to announce its benchmark interest rate decision in one day, market sentiment is increasingly betting on the possibility of a rate cut.

According to data from decentralized prediction platform Polymarket, market participants estimate a 96% probability of a 25 basis point (0.25%) rate cut. This indicates that investor expectations for the central bank to shift toward an accommodative monetary policy have reached a peak.

These expectations have fueled strong buying across the cryptocurrency market and triggered liquidations of short positions. As of this writing, about $66 million (approximately 96.9 billion KRW) in leveraged short positions have been liquidated in just the past hour, with total liquidations reaching around $400 million (about 5.883 trillion KRW) in the past 24 hours. Of this, about $311 million (about 4.574 trillion KRW) came from traders betting on a price decline.

Bitcoin’s sharp rise, coupled with long-term recovery expectations, has brought it one step closer to the psychological resistance level of $100,000. As market participants closely watch the Fed’s next moves, the upcoming rate decision is expected to be an important milestone for the direction of Bitcoin’s price.

Article summary by TokenPost.ai

🔎 Market Interpretation

Bitcoin’s rally is not just a technical rebound; it appears to be the market’s formal reflection of expectations for a Fed rate cut. The market interprets an improved liquidity environment as favorable for risk assets like cryptocurrencies.

💡 Strategic Points

In the short term, whether Bitcoin can break through $100,000 may become a key turning point. However, a rally mainly driven by short liquidations tends to be volatile, so caution is needed when using leverage.

📘 Terminology Explanation

Polymarket: A blockchain-based prediction market platform. Users bet real money on the probability of various event outcomes.

Leverage Position Liquidation: Forced closing of trades when losses on margin exceed certain limits after prices reach specific levels, in order to realize the loss.

TP AI Notice

This article uses a language model based on TokenPost.ai for article summary generation. There may be omissions of key content from the original text or inconsistencies with facts.