Bitcoin surged to 94K ahead of the Fed's rate decision, with a spike in short liquidations.

Traders are eagerly awaiting the upcoming Federal Reserve interest rate decision. Bitcoin (BTC) surged above 94K last night, while Ethereum (ETH) climbed back to $3,300, driving the overall crypto market capitalization higher. In the past 24 hours, short positions have been liquidated for over $300 million.

Market eagerly awaits Federal Reserve interest rate decision

Traders are eagerly awaiting the Federal Reserve’s upcoming interest rate decision. The last rate decision of the year will be announced at 3 a.m. Taiwan time on December 11, followed by a press conference with Chairman Powell. The market expects the Fed to cut rates by another 25 basis points. According to the CME FedWatch tool, the probability of a rate cut is about 87%, up from 67% a month ago. The dot plot and economic forecasts released this time, along with Chairman Powell’s remarks, will have a significant impact on market trends.

Boosted by expectations of a rate cut, the Russell 2000 small-cap index rose, hitting a record intraday high. Rate cuts are likely to benefit small businesses more, as their borrowing costs are more closely tied to market rates than large firms, and lower rates may help economic growth reach more industries.

Bitcoin surged above 94K, short liquidations spike

Bitcoin surged above 94K last night, while Ethereum climbed back to $3,300, driving up the overall crypto market capitalization. Over $300 million in short positions were liquidated in the past 24 hours.

The US Office of the Comptroller of the Currency (OCC) issued Interpretive Letter No. 1188, confirming that eligible national banks can participate in “riskless principal” crypto asset transactions. “These transactions refer to banks executing hedged crypto trades between two customers in the bank’s own name, without holding any crypto assets themselves, acting solely as an intermediary.”

Meanwhile, the Abu Dhabi Global Market (ADGM) has approved Tether’s USDT as an “Accepted Fiat-Referenced Token (AFRT) (Accepted Fiat-Referenced Token, AFRT),” allowing local institutions to legally operate USDT custody, trading, and settlement services. Circle and Binance have also obtained regulatory licenses in Abu Dhabi.

(Tether USDT receives regulatory approval in Abu Dhabi, UAE builds global compliance hub)

This article, Bitcoin Surges to 94K Ahead of Fed Rate Decision, Short Liquidations Spike, first appeared on ChainNews ABMedia.