Bitcoin rally smashes past $116k on softer Fed bets: What changes next?

Bitcoin climbed above $116,000, reaching its highest level in weeks, with Ethereum nearing $4,200 and other major altcoins also gaining significantly. This rally was supported by on-chain indicators showing that aggressive selling pressure has eased, as spot and futures cumulative volume delta (CVD) flattened for the first time since a major sell-off in October. Macroeconomic factors, specifically reports of progress toward a US-China trade framework and signs of a softer Federal Reserve stance, narrowed risk premia and encouraged capital rotation into crypto, according to Timothy Misir, head of research at BRN. This macro easing, combined with forced short covering that liquidated about $365 million in short positions, fueled a "short, sharp risk-on leg." While institutional buyers absorbed supply, Misir cautioned that the market structure remains fragile and highly dependent on headlines, suggesting $116,000 acts as a liquidity magnet, with $108,500 as a tactical sell signal if broken downwards.

(Source：CryptoSlate)