Bitcoin breaks through $94,000 as Fed rate cut expectations trigger $400 million in short liquidations

Source: TokenPost Original Title: Bitcoin($BTC) Breaks Above $94,000 Intraday; $400 Million in Shorts Liquidated on Fed Rate Cut Expectations Original Link: https://www.tokenpost.kr/news/cryptocurrency/312970 Bitcoin(BTC) price surged 3.5% in a single day, breaking above $94,600(approximately 1.3877 billion yuan) during intraday trading. With the U.S. Federal Reserve(FOMC) benchmark interest rate decision about to be announced, market participants are heavily betting on the possibility of a rate cut.

According to decentralized prediction platform Polymarket, the probability of a 25bp(0.25 percentage point) rate cut is viewed at 96% by market participants. This indicates that investor expectations for a shift to looser monetary policy by the central bank have reached their peak.

These expectations have sparked strong buying across the crypto market, triggering a wave of short liquidations. As of reporting time, about $66 million(approximately 969 million yuan) of leveraged short positions were liquidated in the past hour, with total liquidations over the past 24 hours reaching about $400 million(approximately 5.883 billion yuan). Of this, about $311 million(approximately 4.574 billion yuan) came from bearish traders.

Bitcoin’s sharp rise reflects expectations of a long-term recovery while also approaching the psychological resistance level of $100,000. As market participants closely watch the Fed’s next move, the upcoming rate decision will be a key turning point for Bitcoin’s price trajectory.

Market Interpretation

Bitcoin’s rally is not just a technical rebound, but a full reflection of expectations for a Fed rate cut. The market is interpreting an improving liquidity environment as bullish for crypto and other risk assets.

Strategy Highlights

In the short term, whether Bitcoin can break through $100,000 will be an important inflection point. However, a surge mainly driven by short liquidations may lead to volatility, so caution is advised when using leverage.

Glossary

Polymarket: A blockchain-based prediction market platform where users can bet real money on the probability of various events.

Leveraged Position Liquidation: Forced closing of losing leveraged trades when prices hit certain levels and losses exceed margin, to realize losses.