Bitcoin News Today: Global crypto market rebounds $250B in 24 hours driven by rate cut hints and short squeeze

The global cryptocurrency market made a sharp and unexpected rebound on August 22, 2025, surging by over $250 billion in a single 24-hour period. This rapid increase pushed the total market capitalization back above the $4 trillion level, signaling a significant shift in investor sentiment and risk appetite [1]. The rally was fueled by a combination of factors, including renewed optimism about macroeconomic conditions and a strong technical reaction within the market.

Altcoins were at the center of the momentum, contributing nearly $240 billion of the total gain. This performance outpaced Bitcoin’s contribution, highlighting a broad-based rally across the crypto ecosystem [1]. The surge also triggered a short squeeze, with Coinglass reporting that around $200 million in short positions were liquidated, further amplifying the upward pressure on prices [1]. Spot trading volumes surged to $56 billion in the same period, reflecting increased participation and risk-taking among traders [3].

Bitcoin, the largest cryptocurrency by market capitalization, saw a 3% gain in the 24-hour window, trading at approximately $94,000 [2]. While the price recovery was notable, the asset remained under pressure near the $113,700 level, struggling to break past the 50-day moving average, which continued to act as a short-term resistance [6]. Meanwhile, Ethereum, Solana, and XRP also posted positive gains, with altcoins showing early signs of participating in the broader upswing [4].

A key driver behind the reversal in sentiment was a recent statement from U.S. Federal Reserve Chair Jerome Powell, who hinted at the possibility of an interest rate cut in the near future. This development encouraged investors to reallocate capital toward riskier assets, including cryptocurrencies [1]. In addition, US spot bitcoin ETFs recorded daily net inflows of $158 million, suggesting a potential shift in institutional interest and demand [7].

The broader financial markets also reflected a similar rebound, with risk-on sentiment returning as traders anticipated potential easing in monetary policy. Derivatives data showed a significant shift in futures activity, with the indicator flipping from bearish to bullish after five consecutive days of pessimism [5]. This change in derivatives positioning underscored a growing belief among traders that the crypto market might be entering a new phase of optimism.

The surge follows a period of significant volatility, with the crypto market having hit a multi-month low in early August. The current rebound appears closely tied to evolving expectations about the Fed’s next moves and their potential impact on liquidity and asset valuations. Investors are now closely watching for further developments from central banks and how key cryptocurrencies perform in the coming days.

As the market continues to stabilize, the focus remains on whether this recovery is a short-lived bounce or the start of a broader bull cycle. For now, the $250 billion 24-hour surge stands as one of the most dramatic market movements in recent history, offering a clear indication of the crypto market’s sensitivity to macroeconomic signals and trader sentiment.

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Source:

[1] https://news.ssbcrack.com/jerome-powell-sparks-crypto-market-surge-with-rate-cut-hints/

[2] https://cryptodnes.bg/en/tag/snorter-bot/

[3] https://cryptodnes.bg/en/tag/bitcoin-hyper/

[4] https://cryptoadventure.com/what-next-for-eth-xrp-sol-as-bitcoin-stalls-at-113k-etf-outflows-mount

[5] https://cryptoadventure.com/after-5-straight-red-days-btc-futures-flash-green-and-hint-at-rally

[7] https://www.btcmarkets.net/blog/media-centre