Bitcoin (BTC) Price Hits Its Highest Level in Two Months, Surging Above $93,000

Bitcoin (BTC) price hit its highest level in two months on Wednesday, trading above $93,000, as cryptocurrencies across the board posted significant gains amid signals that US-China trade tensions may be cooling and renewed confidence in Federal Reserve leadership.

The world’s largest cryptocurrency jumped nearly 6% in the past 24 hours, reaching $94,500 in early trading. Other major cryptocurrencies followed suit, with Ethereum (ETH) surging 10% to break above $1,700, while Dogecoin (DOGE), XRP, and Solana (SOL) also posted substantial gains, ranging from 7% to 11%.

The total cryptocurrency market capitalization increased by approximately 6.7% over the last 24 hours to reach $2.95 trillion, according to CoinMarketCap data.

Why Is The Crypto Market Going Up Today?

The cryptocurrency market is stabilizing for another consecutive session, continuing the strong rally that started earlier in the week. Tuesday was especially significant, with BTC surging 7% in a single session—the largest gain in two months—and breaking above critical resistance levels. As noted in my recent analysis, this paves the way for Bitcoin to retest its historical all-time high (ATH) around $108,000–$109,000.

As shown in the chart below, Bitcoin isn’t the only one rising—several altcoins are also climbing. Ethereum has gained 10% and is currently priced at $1,783, XRP is up 7% at $2.25, and Solana has increased 8%, testing $151. The meme-based Dogecoin surged 11% and is now trading above 18 cents.

The crypto market’s upward momentum also received a boost as US President Donald Trump indicated he had no intention of firing Federal Reserve Chair Jerome Powell, putting to rest concerns about central bank autonomy that had weighed on markets.

"There is no doubt dollar weakness caused by the Trump administration attack on the Federal Reserve and in particular Chairman Powell, has contributed to the rise of BTC this week but this is just one such catalyst," said Stephen Wundke, Director of Strategy & Revenue at quantitative digital asset investment firm Algoz. "The appointment of SEC Head Paul Atkins and his crypto friendly stance is another which encourages investors."

Further fueling the rally were comments from Treasury Secretary Scott Bessent, who told attendees at a closed-door JPMorgan investor summit that the current tariff standoff between the United States and China "cannot be sustained by both sides" and that the world's two largest economies would need to find ways to de-escalate tensions.

"Bitcoin (BTC) saw a strong breakout in yesterday's session, surging by 6.77% and reclaiming the $92,000 level, fueled by a notable improvement in global market sentiment. The main drivers behind this rally were the dovish comments from U.S. President Donald Trump regarding trade tariffs, as well as his statement that he has no intention of dismissing Federal Reserve Chair Jerome Powell," added Linh Tran, Market Analyst at XS.com.

President Trump later reinforced this sentiment when speaking to reporters at the White House, stating that U.S. tariffs on Chinese goods "will come down substantially" from their current 145% level, signaling a potential thaw in economic relations between the world's two largest economies.

Also Read: Gold Spot Price Hits New Record At $3.4K: How Much Is Gold Per Ounce Today On Price Chart?

Massive Short Liquidations

The rapid price increase triggered a significant "short squeeze" in the derivatives market, with over $63 million in short positions—bets that prices would fall—being liquidated in the past 24 hours.

Data from trading platforms shows that most short liquidations occurred on Bybit ($234 million), followed by Binance ($100 million) and Gate ($70 million). The largest single liquidation was an Ethereum futures position worth over $4.5 million on Binance.

This represents the biggest short liquidation event so far this year, comparing it to a similar event in November when $426 million in short leveraged positions were wiped out during a 16% market surge.