Bitcoin Tops $80,000 as Fed Hike Triggers Short Squeeze

Decrypt reported that Bitcoin rose above the $80,000 level following the Federal Reserve's latest rate decision. The currency settled at $80,846, a 5.88% increase over the preceding 24 hours, after the central bank lifted rates by 25 basis points on Wednesday.

This price action wiped out more than $230 million in short positions. Broader crypto markets saw over $445 million in short bets closed. Bitcoin began the session at $76,355 and reached an intraday peak of $80,857.

The policy change came alongside a forecast placing the median rate at 4.1% through the end of 2027. This projection signaled just one further adjustment rather than a prolonged tightening phase. Technical data shows the Average Directional Index at 40.6, exceeding the 25 level that validates a trend. The Relative Strength Index stands at 63.3, reflecting upward momentum that has not yet hit overbought levels.

Price resistance now sits at $82,281, marking the high point of the current Fibonacci sequence. Key support levels remain at $75,569 and $68,858. The Squeeze Momentum Indicator has stayed active for 11 straight bars, pointing to compressed volatility.