Bitcoin Charges Towards $115,000: Market in Euphoria, Shorts Collapse
Bitcoin (BTC) surpassed the $115,000 mark, reaching $115,214 according to CoinDesk data, making it a high for the last two weeks. The rally was accompanied by large-scale short position liquidations totaling over $320 million, which reinforced the upward momentum. Growth is supported by optimism related to macroeconomic and geopolitical factors.
Crypto Market Rally: Bitcoin and Altcoins on the Rise
According to CoinDesk, bitcoin rose by 3.4% in a day, reaching $115,214. Ether (ETH) increased by 6.2% to $4,188.60. XRP and BNB gained about 2%, and Solana (SOL) showed a growth of 5.8%. The total trading volume in the crypto market exceeded $102 billion, with most activity seen on futures markets dominated by short position liquidations.
Drivers of Growth: Macroeconomics and Geopolitics
The market is supported by a favorable macroeconomic environment and geopolitical news. "This is a sustainable rally fueled by bitcoin's supply cut, strong technical indicators, and a positive macro environment," noted Rachel Lucas, an analyst at BTC Markets.
A significant factor was the report of a preliminary trade deal between the US and China ahead of the meeting between Donald Trump and Xi Jinping, scheduled for October 30 in South Korea. "Improving US-China relations may ease pressure on global markets and support risk assets, including cryptocurrencies," added Lucas.
The US Federal Open Market Committee (FOMC) meeting is also in the spotlight. According to the FedWatch Tool from CME Group, the probability of a 25 basis-point rate cut is 97.3%, encouraging capital inflow into crypto assets.
Short Squeeze: Millions of Shorts Wiped Out
The price increase caused a classic "short squeeze." Within 24 hours, short positions worth $319.18 million were liquidated, with $160 million in just 30 minutes. "The clash of overloaded shorts with bullish momentum amplifies volatility," commented an analyst from Kronos Research. The total volume of liquidations reached $393.74 million, primarily due to the shorts.
The reduction in bitcoin supply following the 2024 halving and growing interest from institutional investors create conditions for further growth. Breaking the $115,000 level could signal potential reaching $120,000 and beyond, should macroeconomic expectations materialize.