U.S.-China Thaw Sparks Crypto Spike, Over $500M in Shorts Liquidated
Bitcoin powered past $93,500 Tuesday amid signs of easing U.S.-China trade tensions, triggering massive short liquidations exceeding $530 million. The rally extended across altcoins, as investors priced in de-escalation in tariffs and potential dollar weakness.
Remarks from U.S. President Donald Trump and Treasury Secretary Bessent pointed to reduced trade friction ahead. BTC’s surge led a 5.2% gain in the CoinDesk 20 Index, with ETH and DOGE up 14% and SUI surging 18%.
The spike forced heavily leveraged traders to close out bearish positions, especially on Bybit and Binance. Analysts believe the rally could continue if geopolitical conditions improve and expectations for interest rate cuts remain intact.
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