Bitcoin Rises as Traders Liquidate Shorts Amid Stock Market Decline

Bitcoin’s price increase has led to over $97 million in BTC shorts being liquidated. Ethereum shorts also faced significant closures, while U.S. stocks saw declines due to market concerns surrounding President Trump’s recent critiques of the Federal Reserve. Amid volatility, cryptocurrencies are exhibiting signs of decoupling from traditional equities, behaving more like risk-off assets.

Bitcoin’s price has seen a recent rise, resulting in many traders betting against the asset being compelled to close their positions. In the last 24 hours, over $97 million in BTC short positions were liquidated, as reported by CoinGlass. Across all cryptocurrencies, approximately $180 million in short positions have been exited by investors due to the upward price movement.

Currently, Bitcoin’s market price stands around $86,800, showing a 2.7% increase within the past day, according to CoinGecko. Previously, the price peaked at over $88,200 shortly after the U.S. markets opened, marking its highest level since late March. This is a notable recovery from the $75,000 drop earlier this month, as investors withdrew from riskier assets amid concerns regarding U.S. President Trump’s unpredictable trade policies.

Traders shorting Ethereum, the second-most valued cryptocurrency, have exited over $26 million in short bets in the same timeframe. Ethereum’s trading price remains around $1,624, stable over the last day. However, it has experienced a decline of more than 20% over the past month, contrasting with the gains observed in Bitcoin and Solana.

On the ground, Solana declined slightly by over one percent, while Dogecoin rose by 2.4%. XRP increased by 1%, highlighting the fluctuating nature of the current market. The U.S. stock market also faced downward pressure on Monday, with the Dow Jones, S&P 500, and Nasdaq each losing about 3%. In contrast, gold prices continue to rise, exceeding $3,420 per ounce.

While Bitcoin and other cryptocurrencies have generally mirrored stock performance, recent trends indicate a potential shift towards a risk-off asset. Trump’s market comments have created turbulence, particularly following his critiques of Federal Reserve Chair Jerome Powell, whom he labelled a “major loser”. Trump has expressed dissatisfaction with Powell’s pace in rate cuts and hinted at a possible replacement, an action analysts warn could destabilize markets further.