Bitcoin Surges Past $98K, Hitting Highest Level Since February!

TradingKey - Bitcoin's price dipped this morning before rallying sharply, dealing a huge blow to both long and short position holders. Data suggests even more volatile swings may be on the horizon.  

In the early hours of May 8, the Federal Reserve announced it would keep interest rates steady at 4.25%-4.5%, triggering a brief downturn in Bitcoin (BTC) prices, which dropped to as low as $95,866. However, the cryptocurrency quickly rebounded, soaring past $98,000 to reach its highest level since February.  

Bitcoin Price Trend, Source: CoinMarketCap.

The wild dip-and-rally action within a single day led to massive liquidations on both sides of the market. According to Coinglass, over 80,000 traders were liquidated in the past 24 hours, with total long and short losses reaching $90 million, split roughly evenly between the two.  

Crypto Market Liquidation Data, Source: Coinglass.

Additionally, Coinglass data reveals that if Bitcoin surpasses $100,000, the total short liquidation pressure across major CEXs could hit $396 million. Conversely, if BTC falls below $96,000, long liquidation intensity may surge to $305 million.  

This means extreme price swings in either direction could trigger massive, near-equal liquidation volumes. An extreme wick scenario, where Bitcoin briefly spikes above $100K before plunging abruptly, could wipe out both longs and shorts again. Traders may want to consider reducing leverage to mitigate risks.