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Crypto Surges Past $90K as Shorts Cover
19 Dec
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.
