Bitcoin Breaks Above $80,000, Sparkking Over $445 Million in Short Liquidations

Bitcoin climbed past $80,000 in Friday trading, setting off another round of short covering across the crypto market, CoinDesk reported. The move has been tied to the Federal Reserve's latest policy decision: while the Fed raised rates by 25 basis points, its projected rate trajectory was viewed as less hawkish than investors had braced for, helping fuel a rebound in risk assets. Bitcoin hit an intraday peak of $80,857 and was last trading at $80,846, up 5.88% over the past 24 hours. The session opened around $76,355, with a daily low of $76,236. Earlier, Bitcoin briefly slipped below $75,000 after a procedural vote in the U.S. Senate failed to advance the Clarity Act, weighing on sentiment. The Fed's 25-basis-point hike marked its first increase since 2023. The accompanying dot plot showed a median policy rate near 4.1% by the end of 2027, which markets read as signaling limited scope for additional hikes and easing concerns about further tightening. Liquidations accelerated as prices jumped. Total crypto-market short liquidations topped $445 million, including more than $230 million in Bitcoin-related shorts, accounting for over half of the total. Short positions bet on price declines; when prices surge, leveraged traders can be forced out as margin falls short. That involuntary buying can push prices higher and trigger a cascading "short squeeze." Key figures: - Bitcoin short liquidations: Over $230 million - Total market short liquidations: Over $445 million - Bitcoin 24-hour gain: 5.88% Traders are now focused on the $82,281 level. CoinDesk cited near-term resistance around $82,281, with support at $75,569 and then $68,858. Technical indicators suggest momentum remains strong, though the report noted the market may shift into consolidation after the rapid one-day surge. The Average Directional Index (ADX) stands at 40.6, above the typical 25 threshold used to signal a strong trend. CoinDesk also pointed to a "golden cross" formed last week, when the short-term moving average rose above the long-term moving average, often viewed as bullish. It added that volatility had been compressed for nearly two weeks, a pattern frequently followed by a sharp expansion in price movement. Near-term attention remains on whether Bitcoin can hold above $80,000 and whether continued short covering sustains further upside.