Bitcoin Pumps as Fed Signals Rate Pause, $415 Million in Shorts Get Rekt
Summary
Crypto surged on renewed Fed rate-cut/hold hopes, with Bitcoin back above $80,000, Ethereum near $2,500, and XRP up sharply. Fed Governor Christopher Waller said he’d support holding rates if inflation keeps improving, which pushed September hike odds down to about 50% and eased Treasury yields. The move triggered a large short squeeze: more than $500 million in crypto liquidations over 24 hours, mostly short positions, including over $300 million in the last hour alone. Stocks also rallied, with the Dow, S&P 500, and Nasdaq all gaining around 1%. The next major catalyst is Friday’s U.S. jobs report, which could quickly shift Fed expectations again.
