Crypto Shorts Get Rekt as Bitcoin, Ethereum and XRP Spike Ahead of Fed Decision

Core Insights - Major cryptocurrencies, including Bitcoin, are experiencing significant price surges ahead of the Federal Reserve's anticipated interest rate cut, leading to a liquidation of short positions [1][5][6] Price Movements - Bitcoin is trading above $94,400, marking its highest price since mid-November, with a 5% increase in the last 24 hours and a 4% rise over the week [2] - Ethereum has seen an 8% daily increase, reaching $3,359, resulting in a weekly gain of over 16%, the largest among the top 10 cryptocurrencies [3] - Other altcoins like XRP, Solana, and Dogecoin have also recorded daily increases of approximately 5%, 6%, and 6% respectively [3] Liquidation Events - Over $376 million in positions have been liquidated in the last day, with shorts accounting for $297 million of this total [5] - Bitcoin positions impacted by liquidations amount to about $153 million, while Ethereum accounts for $110 million [5] - The current liquidation trend is unusual as it primarily affects short positions, contrasting with previous months where long positions were more frequently liquidated [4] Market Sentiment - Traders are optimistic about Bitcoin reaching $100,000 before falling to $69,000, with an 80% probability assigned to this outcome [7] - The upcoming Federal Open Markets Committee meeting is expected to result in a 25 basis points rate cut, which typically benefits risk assets like cryptocurrencies [5][6]