Bitcoin Jumps Past $80K as Short Sellers Get Squeezed Out

Bitcoin just had a big day. The world's largest cryptocurrency shot up nearly 6% in 24 hours, reaching $80,846. The rally came after a surprise decision from the U.S. Federal Reserve (America's central bank, which controls interest rates and money supply).

What sparked the jump? The Fed raised interest rates by 25 basis points (0.25%) — its first increase since 2023. But it also signaled it likely won't keep raising rates much more. This made investors feel more comfortable buying riskier assets like Bitcoin.

Here are the key numbers:

• Bitcoin price: $80,846 (up 5.88% in a day)
• Intraday high: $80,857
• Short bets wiped out on Bitcoin: over $230 million
• Short bets wiped out across all crypto: over $445 million
• Bitcoin is still down nearly 20% from its all-time high

So what's a 'short squeeze'? Let's break it down. A short is a bet that a price will *fall*. Traders borrow the asset, sell it, and hope to buy it back cheaper later to pocket the difference.

But if the price *rises* instead, these traders lose money — and are sometimes forced to buy back the asset quickly to limit losses. This forced buying pushes prices even higher, triggering more losses for other short sellers. That chain reaction is called a short squeeze, and it helped fuel Bitcoin's climb.

What do the charts say? Analysts point to signals suggesting the trend is genuinely strong right now, including a golden cross (when a short-term price average rises above a long-term one — usually a bullish sign). But some indicators are climbing fast, hinting the rally may need a breather soon.

The bottom line: Bitcoin bounced back strongly this week thanks to a friendlier Fed and a wave of short sellers being forced out. Traders are now watching whether it can push above $82,281, or whether it cools off after such a fast move.

This is an AI-generated summary. Read the original article at: https://decrypt.co/378630/bitcoin-blasts-short-squeeze-crypto-liquidations