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The crypto market is firmly in the green today, driven by a powerful short squeeze following new signals from the White House indicating room for interest rate cuts. This sentiment has triggered an explosive turnaround in the market, with bitcoin and ethereum leading the gains.
Massive Liquidations Drive Prices Up #
According to data from Coinglass, over 105,000 traders have been liquidated in the past 24 hours. The total liquidation amount reaches $390.31 million, with $310.55 million coming from short positions.
Bitcoin alone accounted for $135.21 million in liquidations, followed by ethereum with $96.57 million. The largest single liquidation occurred on HTX in the BTC-USDT market, valued at $23.98 million.
The heavy focus on short liquidations indicates how unexpectedly fierce the market recovery was. As prices began to turn, short positions were forced to close, further amplifying the upward pressure.
White House Statements Set the Tone #
Market sentiment received an additional boost from two notable statements out of Washington.
According to a report from Watcher.Guru, White House advisor Kevin Hassett stated there is “more than enough” room for interest rate cuts. Shortly after, President Trump said he wouldn’t rule out reducing tariffs on “some” goods.
Both remarks were interpreted by traders as signals that economic policy might ease—a tone that typically benefits risk assets like crypto.
A Rate Cut Seems Within Reach #
Expectations for a rate cut at the Federal Reserve’s meeting on December 9-10 have risen sharply in recent days.
The CME FedWatch tool now puts the probability of a 25-basis-point cut at 89.6%. Major banks such as Morgan Stanley, J.P. Morgan, and Bank of America also anticipate a first step down.
Morgan Stanley called earlier skepticism a “misconception” and now expects not only a December cut but also additional moves in January and April. Analysts, however, foresee a so-called ‘hawkish cut’: a rate reduction accompanied by cautious communication to prevent excessive market enthusiasm.
Platforms like Kalshi show even higher odds, with their models indicating around a 95% chance of a December cut.
Why This Matters for Crypto #
Lower interest rates reduce financing costs, stimulate risk appetite, and make long-term assets more attractive. Historically, both stocks and crypto react strongly to such policy shifts.
The current combination—massive short squeezes, rising liquidations, and strong macro signals—creates a cocktail that can quickly propel the market upward.
Despite the optimism, there is no official confirmation from the Federal Reserve yet. Analysts also emphasize that the rate cut might come with more restrained language, which could ultimately dampen its market impact.
The crypto market now awaits the Fed’s decision tomorrow. If the central bank initiates the first cut, it could reinforce the current momentum. Until then, the market remains extremely sensitive to macro news and new rounds of liquidations.