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Bitcoin suddenly surged past the $95,000 mark during this wave of short-selling, with $591 million worth of short positions forcibly liquidated within just 24 hours. According to trading data, the liquidation volume from a major exchange contributed nearly half of the total.
The trigger point for the market was actually quite clear—US core inflation data came in below expectations, leading the market to believe that the Federal Reserve might cut interest rates earlier. But reality delivered a blow: the 2.7% inflation rate, while retreating, still failed to reach the Fed’s 2% target. This completely shattered the previously accumulated expectations of rate cuts.
As a result, Bitcoin’s rally came to an abrupt halt, having already fallen about 25% from its all-time high. The market has been oscillating between policy uncertainty and actual data, with investors’ emotions riding a roller coaster—these recent fluctuations have indeed been quite tumultuous.