Bitcoin Rockets Past $94K as Deep-Liquidity Buyers Trigger Massive Short Squeeze Ahead of FOMC

Bitcoin snapped its week-long consolidation on December 9 with a violent upward break, blasting past $94,000 after spending days trapped between $88,000 and $92,000. The surge unfolded in minutes, signaling that large players moved aggressively as soon as the range gave way.

Blockchain flow data shows several major custodial and exchange-linked wallets absorbing thousands of BTC in a tight window—an early tell that deep-pocket buyers stepped in before the rally accelerated. Once demand pierced the upper band of the multi-day range, order books thinned rapidly and shorts began scrambling for exits.

Futures markets took the brunt of the move. More than $300 million in liquidations hit crypto markets over the past 12 hours, including over $46 million from Bitcoin shorts and $49 million from Ethereum short positions. As stop-loss clusters triggered, BTC’s price climbed almost vertically with virtually no opposing supply.

Regulatory Tailwinds Add Fuel Just Before the Breakout

Hours before Bitcoin exploded upward, the US Office of the Comptroller of the Currency issued a meaningful policy update: banks are now permitted to conduct riskless principal crypto transactions, allowing regulated institutions to facilitate crypto trades without taking assets onto their balance sheets.

The timing amplified bullish sentiment, signaling a wider institutional gateway at a moment when markets were already anticipating easier liquidity conditions from the upcoming Federal Reserve rate decision. If rate cuts materialize, high-beta assets like Bitcoin typically benefit.

All Eyes on FOMC as BTC Holds Near Highs

With volatility still elevated and funding rates resetting across derivatives platforms, traders are watching whether new demand can sustain the breakout or if profit-taking cools the momentum heading into the FOMC announcement. For now, Bitcoin remains perched near intraday highs—its strongest show of force in weeks.