Bitcoin, along with the broader crypto market, started to gain bullish momentum following steady US Fed rates.
Bitcoin BTC $117 633 24h volatility: 0.3% Market cap: $2.34 T Vol. 24h: $24.31 B broke the $99,000 mark earlier today, reaching a three-month high of $99,406.
The global crypto market cap increased by 2.7% in the past 24 hours, currently at $3.06 trillion, according to data from CoinMarketCap. Moreover, the daily trading volume rose 25% to $104.3 billion.
Following the bullish momentum, short trading positions started to liquidate fast. According to data from CoinGlass, the total crypto liquidations reached the $300 million mark over the past day, with the majority, worth $215 million, being shorts.
Bitcoin alone recorded $114.5 million in liquidations — $18.3 million longs and $96.2 million shorts.
According to Lookonchain, an anonymous Bitcoin address closed two short BTC positions and lost $1.6 million due to the price hike.
After $BTC jumped, this whale closed his $BTC short positions—taking a loss of over $1.6M.https://t.co/kE6VEWKMRA https://t.co/HCJufZTupr pic.twitter.com/qjpY8rvaRu
— Lookonchain (@lookonchain) May 8, 2025
CoinGlass data shows that the largest single liquidation order in the past 24 hours, worth $10.6 million, also belonged to a short BTC trading position.
Historically, short liquidations trigger optimism among traders, pushing the price higher.
The Bullish Case for Bitcoin (BTC)
Bitcoin’s price surge came after the US Federal Reserve announced the interest rates will remain steady at 4.25% to 4.50%, according to CNBC. The leading digital asset recorded high volatility before the FOMC meeting on May 7.
This triggered bullish momentum for financial markets. The S&P 500 index gained 0.43% while the CBOE Volatility Index (VIX) dropped 7.71%.
As Bitcoin started to rise, a whale that had been inactive for four months bought 100 BTC for $9.78 million.
A whale bought 100 $BTC($9.78M) after the $BTC price rose.
This whale sold 100 $BTC at $101,874 4 months ago, and after 4 months of inactivity, he started buying back $BTC at a lower price.https://t.co/XSuQ18gxT5 pic.twitter.com/Vg4jfuGOg3
— Lookonchain (@lookonchain) May 8, 2025
Increasing whale accumulation will push the Bitcoin price since there are no expectations of a selloff from analysts.
The positive inflows from the US-based spot BTC exchange-traded funds also strengthened the positivity around Bitcoin. SoSoValue data shows a net inflow of $142 million for these investment products.
Analysts at Bitfinex, a leading crypto exchange, expect Bitcoin to break its all-time high of $109,000 if the $95,000 support holds.
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