Bitcoin rallied sharply after Federal Reserve Chair Jerome Powell’s keynote speech at the Jackson Hole Economic Symposium left open the possibility of an imminent interest rate reduction. Cryptocurrency markets responded swiftly as Bitcoin price climbed from a multi-week low near $111,600 to an intraday high above $117,300, representing a gain of more than 5 percent in a single session.
Data from leading derivatives analytics platforms showed that a staggering $379.88 million in short positions was liquidated as bearish traders were forced to cover their bets on falling prices. Ether also saw significant liquidations, with approximately $193 million of short positions unwound during the same period.
Analysts pointed to this sharp squeeze on bearish liquidity as evidence that investor sentiment has shifted decisively back toward risk-on assets. Market participants noted that the liquidation heatmap displayed concentrated sell orders clustered just above the $117,000 threshold, which were swiftly consumed by buyers eager to enter new long positions.
Technical observers highlighted the sweep of lows at around $111,900 on Aug. 3 as a key accumulation zone that set the stage for the subsequent rally. Once that level was reclaimed, momentum accelerated, and Bitcoin’s price action illustrated the broader market’s eagerness to reengage after a period of consolidation.
Emerging from the technical perspective, many traders now view the uptrend as fully restored, citing a golden cross that has formed as a sign of sustained strength. With potential new all-time highs on the horizon, the prevailing narrative suggests that the combination of dovish central bank guidance and robust on-chain demand could drive Bitcoin toward historical peaks before year-end.
This price action underscores the increasing sensitivity of crypto markets to macroeconomic signals and monetary policy shifts, with Bitcoin’s reaction to Jackson Hole remarks serving as a prime example of the asset’s evolving role within global financial markets.
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