Today a stronger-than-expected figure came out… and it ended up liquidating the shorts.
That pretty much sums up the whole session.
At 10:00 ET:
🇺🇸 ISM Services
Expected: 54.3
Actual: 55.4
The first reading was uncomfortable for crypto:
a strong economy → less urgency to cut rates → potentially higher yields.
But the market ended up hearing something else.
Christopher Waller said he would be willing to keep rates unchanged if inflation continues to moderate.
And this happened:
📉 probability of a September rate hike: 63.2% → 50.4%
📉 Treasury 10Y pulling back
📈 Nasdaq +1.4%
🚀 $BTC recovering $80K
Then the second part of the move came:
💥 more than $415M in crypto shorts liquidated in 24h.
That’s the key.
Today’s rally wasn’t simply:
“a good data point came out and everyone bought.”
It was a combination of:
Fed repricing + yields falling + shorts getting trapped.
That changes how I interpret the candle.
When price rises because new buyers step in, that’s one thing.
When, on top of that, hundreds of millions in shorts are forced to repurchase…
the fuel gets multiplied.
Now I would watch to see whether BTC can hold the area it reclaimed once the squeeze effect disappears.
Because tomorrow brings another test that’s much more important:
🇺🇸 NFP / August employment.
Today the trapped shorts won.
Tomorrow we’ll find out if real buyers also stepped in.
$XRP $BNB
#bitcoin #Crypto #Fed
That pretty much sums up the whole session.
At 10:00 ET:
🇺🇸 ISM Services
Expected: 54.3
Actual: 55.4
The first reading was uncomfortable for crypto:
a strong economy → less urgency to cut rates → potentially higher yields.
But the market ended up hearing something else.
Christopher Waller said he would be willing to keep rates unchanged if inflation continues to moderate.
And this happened:
📉 probability of a September rate hike: 63.2% → 50.4%
📉 Treasury 10Y pulling back
📈 Nasdaq +1.4%
🚀 $BTC recovering $80K
Then the second part of the move came:
💥 more than $415M in crypto shorts liquidated in 24h.
That’s the key.
Today’s rally wasn’t simply:
“a good data point came out and everyone bought.”
It was a combination of:
Fed repricing + yields falling + shorts getting trapped.
That changes how I interpret the candle.
When price rises because new buyers step in, that’s one thing.
When, on top of that, hundreds of millions in shorts are forced to repurchase…
the fuel gets multiplied.
Now I would watch to see whether BTC can hold the area it reclaimed once the squeeze effect disappears.
Because tomorrow brings another test that’s much more important:
🇺🇸 NFP / August employment.
Today the trapped shorts won.
Tomorrow we’ll find out if real buyers also stepped in.
$XRP $BNB
#bitcoin #Crypto #Fed