What caused Bitcoin's price to rise above $90,000 recently?

Bitcoin's price increased due to a combination of factors, including gains in metals prices and dovish commentary from Fed Governor Chris Waller, which prompted short sellers to cover their positions.

Did Fed Governor Chris Waller influence the crypto market rally?

Yes, Chris Waller's dovish remarks, suggesting a lower neutral interest rate and minimal inflation, contributed to the bullish sentiment in the crypto market.

Is the recent Bitcoin rally a sign of new investment or short covering?

The current rally appears to be driven by short sellers closing their positions, indicating a deleveraging event rather than a surge of new investment into the market.

Home / Business and Economy / Crypto Surges Past $90K as Shorts Cover

Crypto Surges Past $90K as Shorts Cover

19 Dec

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Summary

Bitcoin price rose above $90,000 for the first time since last weekend.
Fed Governor Chris Waller made dovish remarks, hinting at lower interest rates.
Short positions are closing, indicating a deleveraging rally rather than new investment.

Bitcoin's price experienced a notable increase, climbing above the $90,000 mark for the first time since the preceding weekend. This rare upward movement occurred shortly after the U.S. stock market commenced trading on Wednesday. The rally coincided with significant gains in metals prices, including silver, gold, and copper.

Further bolstering bullish sentiment were dovish remarks from Fed Governor Chris Waller, a leading candidate for the next Federal Reserve chairman. Waller suggested that the neutral federal funds rate is lower than previously thought and indicated that U.S. job growth is near zero, with no expected inflation rebound.

Analysis of open interest data indicated that short positions were being covered as prices rose, suggesting a deleveraging rally rather than an influx of new long positions. Bitcoin was up approximately 3% in the preceding 24 hours, offering a potential shift in the pattern of significant drawdowns observed during U.S. market hours.