Bitcoin Pumps as Fed Signals Rate Pause, $415 Million in Shorts Get Rekt — SkimNews
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- Bitcoin reclaimed $80,000, trading near $80,270 and up roughly 3% over 24 hours, with Ethereum closing in on $2,500 (+2.2%) and XRP gaining 6%
- Fed Governor Christopher Waller said he would be "inclined to support" holding rates steady, pulling September rate-hike odds down from 63.2% to 50.4% per CME FedWatch
- Crypto short sellers accounted for over $415 million of the $500+ million in 24-hour liquidations, with 119,000+ traders force-closed as rising prices triggered a squeeze cascade
- The 10-year Treasury yield dropped to roughly 4.73% from its highest level since November 2023, while the Dow added 453 points (+0.9%) and the S&P 500 and Nasdaq each gained about 1%
- Nvidia confirmed a roughly $13 billion deal to acquire AI model hub Hugging Face, boosting the tech sector alongside a stronger-than-expected earnings report from Snowflake
- Fed Chair Kevin Warsh's hawkish Jackson Hole keynote a week earlier had pushed Bitcoin down to $76,877 — making Thursday's bounce past $80K a sharp reversal
- The Bureau of Labor Statistics releases its August jobs report Friday morning, the last major economic data release before the Fed's September 15-16 meeting
Why it matters: Short sellers — not fresh buyers — drove Thursday's crypto rally, with $416 million in shorts force-closed across 119,000 traders in a squeeze cascade amplifying Bitcoin's move past $80K. The source notes Friday's August jobs report is the last major data before the Fed's September 15-16 meeting, and one weak print can shift hike odds as forcefully as Waller's speech did.
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