Bitcoin Rises After FOMC: $15M in Short Positions Liquidated

Bitcoin Futures Traders Liquidate Sellers as Fed Maintains Interest Rates

Bitcoin’s price surged after yesterday’s FOMC comments aligned with market consensus. The Federal Reserve confirmed that it would keep interest rates unchanged within the current range of 4.25% to 4.5%.

Although Fed Chair Jerome Powell and policymakers acknowledged that inflation remains “somewhat elevated,” the central bank opted for a wait-and-see approach, leaving all monetary policy options open in the short term.

At first, Bitcoin’s price dipped alongside major indices like the S&P 500, DOW, and QQQ, before reversing direction and reaching a daily high near $104,782.

However, technical charts suggest that the move may lose momentum. Data from Velo.data indicates that the price action was primarily fueled by futures market activity, with a spike in Bitcoin’s funding rate following the liquidation of $15 million worth of short positions.

Despite Bitcoin testing the $104,000–$106,000 resistance zone, it remains uncertain whether spot buying will see a sustainable increase and whether the Coinbase Premium Index will return.

The ideal scenario for further price acceleration above $105,000 would involve a rise in leveraged long positions, accompanied by growing spot market volumes. This type of market dynamic would provide stronger momentum for an upward move.

Regarding Fed Chair Jerome Powell’s comments following the FOMC meeting, most of his statements were in line with market expectations.

Economist and well-known crypto trader Alex Krüger called the press conference “good,” highlighting Powell’s optimism about both policy and the economy.

“The FOMC statement did not mention ‘progress in the fight against inflation,’ creating a bear trap before the press conference.”

According to HUF, founder of Pear Protocol and former traditional finance trader, the FOMC press conference was “nothing special”—neither hawkish nor dovish but rather diplomatic.

“I think the market expected Powell to be more explicit about the Fed’s independence. He explained that removing the phrase ‘progress in the fight against inflation’ wasn’t a hawkish signal. Powell didn’t really give sellers anything to work with, and buyers took advantage of that to squeeze aggressive short positions.”