Bitcoin Reclaims $115,000 Barrier as Bears Get Wiped Out

The crypto market surged over the weekend, with Bitcoin, Ethereum, and other major digital assets rising on renewed optimism around global economic conditions and a wave of forced short liquidations.

BTC gained 3.6% in the past 24 hours, climbing to around $115,700 – its highest level in two weeks – while ETH jumped more than 6.5% to above $4,200. Solana, XRP, and BNB also saw strong gains.

Rachael Lucas, an analyst at BTC Markets, said the move signals a broader, sustained trend rather than a short-lived spike. “We’re seeing continued momentum driven by macroeconomic optimism, tightening onchain supply, and increasingly bullish technical patterns,” she explained.

Trade and Policy Hopes Lift Market Sentiment

Reports that the United States and China have reached a preliminary framework for a potential trade deal gave markets a further boost. The agreement is expected to be discussed later this week when Donald Trump and Xi Jinping meet in South Korea.

“Investors are reacting positively to signs of thawing relations between the world’s two largest economies,” Lucas noted. “If progress continues, global supply chains could stabilize – a development that typically supports risk assets such as cryptocurrencies.”

At the same time, traders are closely watching the upcoming Federal Reserve meeting on Tuesday and Wednesday. Expectations are high for another interest rate cut, with the CME Group’s FedWatch Tool showing over 96% likelihood of a 25-basis-point reduction to the 3.75%–4.00% range.

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Short Squeeze Accelerates the Rally

A surge in short liquidations added further fuel to the market rebound. Around $160 million worth of short positions were wiped out within just 30 minutes, sparking what analysts described as a classic short squeeze.

Data from Coinglass showed that total short liquidations reached nearly $350 million in the past day, with over half occurring in Bitcoin and Ether perpetual contracts.

“This reflects how sensitive markets remain to sudden shifts in sentiment,” Lucas added. “A relatively small price movement can trigger significant volatility when positions are heavily skewed to one side.”

Outlook

With positive macro signals, potential rate cuts, and easing trade tensions, analysts believe the broader setup for cryptocurrencies remains favorable – though volatility is likely to persist.