Bitcoin surged past $115,000 on Sunday, marking its highest price in two weeks as traders reacted to easing macroeconomic concerns and a wave of short position liquidations.
Market optimism lifts bitcoin
According to market data, bitcoin rose 3% in the past 24 hours to $115,179, while ether jumped 6% to $4,187.
Analysts attributed this rally to positive sentiment around potential U.S.-China trade progress and expectations of an upcoming Federal Reserve rate cut.
Rachael Lucas, an analyst at BTC Markets, explained:
“These price movements are not isolated spikes but part of a broader, sustained trend supported by macroeconomic tailwinds, tightening on-chain supply, and strong technical indicators.”
Short squeeze triggers liquidations
The rally prompted a sharp unwinding of bearish bets.
Data from Coinglass indicates that approximately $347.5 million in short positions were liquidated over the past day, with $160 million of that occurring in just 30 minutes.
Most liquidations were concentrated in bitcoin perpetual contracts, fueling further price acceleration.
Vincent Liu, CIO at Kronos Research, commented:
“Millions in short liquidations indicate a classic short squeeze within bearish traders were forced to cover as prices surged, accelerating the move upward.”
Expectations for a year-end rally
With bitcoin nearing its all-time high of $126,080, market observers are anticipating a potential ‘Santa Claus Rally’—a seasonal year-end price surge.
Nick Ruck, Research Director at LVRG, told The Block that a continuation of bullish momentum is likely, especially after the recent halving cycle.
Lucas added that a 15% to 25% rally from current levels could push bitcoin to $130,000–$150,000 by the end of 2025.
The traditional year-end rally is typically driven by holiday liquidity, portfolio repositioning, and upbeat market sentiment.
Macro factors and technicals
Upcoming Federal Reserve decisions and progress on U.S.-China trade talks are expected to remain key drivers.
With the next FOMC meeting scheduled this week and a high probability of a rate cut, traders are watching macroeconomic and on-chain indicators closely.
