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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
09/04/2026

Bitcoin Surges to Four-Month High as Fed Dovishness Triggers $415M Short Squeeze

What happened: Bitcoin rallied as much as 6.

Bitcoin Surges to Four-Month High as Fed Dovishness Triggers $415M Short Squeeze

What happened: Bitcoin rallied as much as 6.8% to over $80,000 on Thursday after Federal Reserve Governor Christopher Waller signaled support for pausing rate hikes, conditional on continued disinflation. The move triggered more than $415 million in short liquidations within 24 hours, with CoinGlass reporting $329 million wiped out in a single hour and over 119,000 traders affected. The rally also coincided with a broader risk-on move in equities, as the S&P 500 and Nasdaq both gained over 1%.

Why it matters: Waller's remarks marked a notable divergence from recent hawkish commentary by Fed Chair Kevin Warsh, sharply lowering market-implied odds of a September rate hike. The scale of short liquidations underscores the market's sensitivity to macro signals, with crypto and equities moving in tandem. However, Waller's dovishness was explicitly conditional, and the rally partially reversed the next day after strong jobs data.

Source: Decrypt