Bitcoin Rallies $4K to $85K; $1.82B Liquidated as Fed Signals Rate Cut
Bitcoin staged a sharp rebound overnight, climbing from a low of $80,636 to $85,040 on OKX spot markets, marking a $4,000 recovery amid renewed hopes for a Federal Reserve rate cut. The rebound follows dovish comments by New York Fed President John Williams, who indicated the Fed has room to lower rates in the near term given a cooling U.S. labor market. Over the past 24 hours, the crypto market saw $1.82 billion in liquidations across 371,251 positions, with long positions bearing $1.57 billion of that total. Ethereum mirrored Bitcoin’s recovery, rising from $2,622 to a peak of $2,800 before settling at $2,775. Traders should note that while the dovish Fed signal and deleveraging clear the way for a bullish move, uncertainties persist due to ongoing U.S. government shutdown impacts on economic data and Fed policy clarity.
Bullish
The dovish Fed signal from New York Fed President John Williams lifted rate-cut expectations and triggered a swift Bitcoin rebound, suggesting renewed buying interest. Massive liquidations—particularly of leveraged long positions—have removed excess speculative pressure and may set the stage for a more stable rally. Similar past events, such as post-Fed-meeting dips followed by recoveries, have often led to sustained uptrends in the short term. However, lingering U.S. government shutdown impacts on economic data introduce some uncertainty. Overall, the combination of policy pivot signals and cleaner leverage profiles supports a bullish outlook for both Bitcoin and broader crypto markets.