Bitcoin surged above $115,000 as millions of short positions were liquidated.

Major cryptocurrencies, including Ethereum, rose on Sunday. This was driven by traders' optimism regarding the macroeconomic situation and the mass liquidation of short positions.

According to The Block, Bitcoin rose 3% in 24 hours, reaching $115,179—a two-week high. Ether rose 6% to $4,187. XRP and BNB gained about 2%, while Solana gained 5.7%.

“The current growth isn't a one-off, but part of a sustainable trend. It's driven by a favorable macro environment, a shrinking supply chain, and strong technical indicators,” explained Rachel Lucas, an analyst at BTC Markets.

Positive sentiment is fueled by news of a possible trade deal between the US and China. Media reports indicate that the parties have preliminary agreed on its terms ahead of the meeting between Donald Trump and Xi Jinping in South Korea this coming Thursday.

“Markets are encouraged by the prospect of improved US-China relations. This could ease pressure on global supply chains and support risk assets, including cryptocurrencies,” Lucas added.

The US Federal Open Market Committee will also meet this week. Most experts expect an interest rate cut. CME Group's FedWatch Tool estimates the probability of such a move at 96.7%.

Short squeeze

The price surge triggered a massive liquidation of short positions. It was previously reported that $160 million in short positions were forcibly closed in just 30 minutes.

“The massive liquidations point to a classic 'short squeeze,' where bears are forced to take losses as the price rises, which only accelerates the rally,” commented Vincent Liu, CIO of Kronos Research. “The collision of overextended shorts with bullish momentum sharply increases upward volatility.”

Source: cryptonews.net