Bitcoin surged above $94,400 on Tuesday, hitting its highest level since mid-November, as traders positioned ahead of the Federal Reserve’s Wednesday policy announcement. That’s a 5% jump in just 24 hours, following a recent consolidation near $90,000.
Altcoins rode the wave higher. Ethereum climbed 8% to $3,359, extending its weekly gains to more than 16%—the strongest performance among the top 10 cryptocurrencies. Solana rose 6% to $144, XRP added 5% to $2.17, and Dogecoin jumped 6% to $0.15.
It’s clear traders are ramping up exposure ahead of expected market-moving events.
The catalyst? Market expectations for a third consecutive Fed rate cut. CME FedWatch data shows a nearly 90% probability of a 25-basis-point reduction. Historically, lower interest rates favor risk assets like Bitcoin, but Tuesday’s spike was intensified by short-position liquidations, creating a forced buying frenzy.
Data from CoinGlass revealed $376 million in liquidations, with $297 million from shorts. Bitcoin alone accounted for $153 million, Ethereum $110 million, and a four-hour window saw $260 million in short liquidations, one of the largest forced buying episodes in weeks.
Institutional sentiment is warming too. The Office of the Comptroller of the Currency clarified that national banks can conduct riskless principal transactions in crypto, letting them intermediate trades without holding inventory. Standard Chartered analysts nudged their year-end Bitcoin target to $100,000, calling current conditions a “cold breeze” rather than a crypto winter.
Meanwhile, on Capitol Hill, Senator Kirsten Gillibrand signaled progress on market structure legislation, noting that nothing is standing in the way of a draft this week.
The takeaway? Bitcoin’s rally isn’t just price action—it’s a perfect storm of macro expectations, institutional clarity, and short-covering dynamics. Traders who timed this wave wisely likely caught a textbook momentum move.
