Bitcoin surged beyond a week-long consolidation as expectations of a Federal Reserve rate cut and an influx of approximately $150 billion into the cryptocurrency market sparked a short squeeze, with altcoins outperforming Bitcoin in gains.
The total crypto market capitalization experienced a rapid increase within 24 hours, reflecting heightened risk tolerance among investors. Market participants anticipated that the Fed would reduce interest rates at this week’s FOMC meeting, which diminishes the opportunity cost associated with holding non-yield-bearing assets like Bitcoin and other cryptocurrencies.
Data from CoinGlass revealed that once Bitcoin broke out of its narrow trading range, forced liquidations targeted concentrated short positions. This liquidation activity contributed to price momentum, particularly benefiting altcoins which saw stronger percentage increases compared to Bitcoin.
On December 9th, Bitcoin’s price climbed as institutional developments unfolded alongside speculation about monetary policy easing. PNC Financial Services Group—ranked eighth among U.S. banks by asset size—introduced direct spot trading for eligible clients via its proprietary platform powered by Coinbase’s Crypto-as-a-Service technology. This integration allows wealth management and institutional customers to trade Bitcoin seamlessly within their existing investment interfaces without needing separate exchange accounts.
Financial analysts note that markets are pricing in an imminent Fed rate cut expected to ease financial conditions across risk assets broadly. Lower interest rates reduce the relative attractiveness of cash or short-term bonds versus cryptocurrencies like BTC and altcoins since these digital assets do not generate yield but may appreciate in value under such scenarios.
The session also witnessed significant forced liquidations triggered when Bitcoin surpassed resistance levels where bearish bets were heavily concentrated according to open interest data. As shorts were squeezed out through stop-loss triggers and margin calls, market makers bought hedges aggressively pushing prices higher until traders began taking profits which capped further upside movement.
This dynamic led alternative cryptocurrencies to outperform Bitcoin on a percentage basis during this rally phase—a sign of growing enthusiasm for more speculative digital tokens amid improving market sentiment toward crypto assets overall.