Bitcoin rose to $80,270, gaining nearly 3% in 24 hours. Ethereum and XRP also saw growth, with XRP increasing by 6%. This rally coincided with a broader rise in the U.S. stock market, where the Dow Jones Industrial Average grew by 453 points and the S&P 500 and Nasdaq gained nearly 1%.
The price surge triggered a massive short squeeze. According to CoinGlass, over $500 million in crypto liquidations occurred within 24 hours, with short sellers losing more than $415 million. In the final hour of the rally, $329 million in short positions were liquidated, including $86 million from Bitcoin bets.
The market reaction followed comments from Fed Governor Christopher Waller, who indicated support for holding interest rates steady. Consequently, CME FedWatch data showed the probability of a September rate hike dropped from 63.2% to 50.4%. The 10-year Treasury yield also fell to approximately 4.73%.
