Key moments

• This week witnessed renewed investor enthusiasm that decisively pushed Bitcoin past the $90,000 threshold. At press time, the cryptocurrency is trading near the $93.700 mark.
• More than $560 million in short positions were wiped out amid this rally.
• Significant capital flowed into US Bitcoin ETFs, with net inflows reaching $936 million.

Bitcoin Steady Above $93,000 as Market Sentiment Shifts

Bitcoin has demonstrated significant upward momentum this week. This notable price surge began on Tuesday, with the digital asset experiencing a substantial rally that propelled it beyond the $90,000 mark. The bullish sentiment carried into Wednesday, seeing Bitcoin briefly surpass $94,000 before stabilizing above $93,000. Several key factors appear to be fueling this renewed strength of the cryptocurrency market leader.

A major catalyst for the recent price appreciation seems to be a shift in the broader macroeconomic landscape and evolving geopolitical considerations. Reports indicating a potential de-escalation in trade tensions between the United States and China provided a boost to overall market confidence. Simultaneously, President Trump has stated that posture regarding the leadership of the Federal Reserve also contributed to a more optimistic market sentiment. These developments collectively encouraged a greater appetite for volatile assets, benefiting cryptocurrencies like Bitcoin.

Adding to the upward pressure was a significant event in the derivatives market. The rapid price increase triggered a wave of liquidations for traders betting on a price decline. Approximately $635 million in leveraged positions were closed out, with the overwhelming majority of these being short positions. As the price climbed, these short positions became unprofitable, forcing their automated closure and further accelerating the price’s upward momentum. Data indicates that over $560 million of the total liquidations were from short contracts, highlighting the impact of bearish traders being caught off guard by the swift upward move.

Furthermore, a substantial influx of capital into US Bitcoin exchange-traded funds (ETFs) underscored growing institutional and investor confidence. On Tuesday alone, these investment vehicles registered considerable net inflows totaling $936 million. This represents the most significant single day of inflows since January, signaling a renewed wave of institutional interest and adoption.