Bitcoin, Ether, and other major cryptocurrencies rose on Sunday evening. The market was supported by positive macroeconomic expectations and mass short liquidations over the past day.
In 24 hours, Bitcoin gained 3% and climbed to $115,179 — the highest in two weeks. Ether jumped by 6% to $4,187. XRP and BNB rose by about 2%, while Solana added 5.7%.
BTC Markets analyst Rachel Lucas noted:
“These moves are not just isolated spikes. They are part of a sustainable trend driven by macroeconomic factors, reduced supply on the blockchain, and strong technical signals.”
Over the weekend, several major media outlets reported that the US and China had reached a preliminary framework agreement for a future trade deal. The details are to be discussed by Donald Trump and Xi Jinping this Thursday at a meeting in South Korea.
“Markets are reacting positively to the possible warming of US-China relations. This could ease tension in global supply chains and support risk assets, including digital currencies,” Lucas added.
Also this week, a FOMC meeting will take place. It is scheduled for Tuesday and Wednesday. Most analysts expect another rate cut. According to FedWatch by CME Group, the probability of a 25 basis point cut to a range of 3.75–4% is currently estimated at 96.7%.
Mass short liquidations
Against the backdrop of positive macro signals and rising prices, the market was hit by a wave of short position liquidations. According to open sources, in just 30 minutes shorts worth over $160 million were closed.
“Such a volume of liquidations is a classic short squeeze. Bears were literally forced to close out as the price shot up,” noted Vincent Liu, investment director at Kronos Research.
When the market is overloaded with bearish bets and a sudden bullish impulse appears, this sharply increases volatility and pushes prices even higher.
According to Coinglass, in the past 24 hours, nearly $347.5 million in short positions were liquidated. Of that, $195 million came in just the last four hours.
Most of the liquidations occurred in perpetual contracts for BTC and ETH — even a small price increase triggered mass short closures. This again points to a classic short squeeze and may signal the start of a more sustainable growth phase.
The market prepares for a new rally
At the end of the year, the crypto market traditionally rises — this seasonal move is known as the “Santa rally.” Analysts believe the trend may repeat this year.
With the upcoming halving in 2024 and continued macroeconomic positivity, the bullish impulse may continue. BTC Markets suggests that Bitcoin could gain 15 to 25% from current levels. According to their estimates, by the end of 2025, the price could reach $130,000–150,000.
See also: Arthur Hayes’ forecast for Zcash sent the coin above $350
This scenario could be supported by year-end portfolio rebalancing, increased liquidity, positive trader sentiment, as well as expectations of a Fed rate cut and improved foreign trade. However, in the face of volatile macro statistics, high volatility is still possible.
