Bitcoin Surges as Short Positions Liquidated Amid Trump Fed Critique

Bitcoin’s price rise has prompted liquidation of over $97 million in short positions. Ethereum also faces significant short position closures, while U.S. stocks saw substantial declines. Trump’s criticism of Fed Chair Powell compounds market uncertainties.

In recent developments, Bitcoin’s price has increased, leading many traders who had bet against it to close their positions. In just 24 hours, over $97 million worth of Bitcoin short positions were liquidated, alongside nearly $180 million in short positions across all cryptocurrencies, as reported by data provider CoinGlass.

Currently, Bitcoin’s market value is approximately $86,800, reflecting a 2.7% gain over the last day. This follows a brief peak above $88,200 when U.S. markets opened, marking its highest point since March. Despite earlier fears regarding U.S. President Donald Trump’s unpredictable trade policies, the cryptocurrency remains significantly above the $75,000 threshold reached earlier this month.

Meanwhile, Ethereum, the second-largest cryptocurrency by market capitalisation, has seen over $26 million in short bets closed within the last 24 hours. Ethereum’s price remains relatively stable at $1,624, although it has dropped over 20% in the past month, contrasting with the gains observed in Bitcoin and Solana during the same timeframe.

On the other hand, Solana has seen a minor decline, while Dogecoin has increased by about 2.4%, and XRP has risen by approximately 1%, amid fluctuating market conditions. Concurrently, U.S. stock indices like the Dow Jones Industrial Average, S&P 500, and Nasdaq have experienced declines of around 3%. On a different note, gold prices continue to climb, recently reaching over $3420 per ounce.

While cryptocurrencies have typically moved alongside stock markets, Bitcoin is showing signs of independence, behaving more like a risk-off asset. Trump’s recent market interventions have included a critique of Federal Reserve Chair Jerome Powell, calling him a “major loser” and threatening leadership changes at the Federal Reserve. This has contributed to heightened market volatility and uncertainty surrounding the broader economy.