Bitcoin Price Explodes: $117K Breakout Liquidates Bears, Paving Way for New All-Time Highs

The **Bitcoin price** recently demonstrated a remarkable surge, capturing significant attention across the financial world. It decisively chased its range highs after the **Federal Reserve** hinted at a pivotal policy shift. This occurred during the concluding speech of the Jackson Hole Symposium. Consequently, this event opened the door to fresh all-time highs for the premier cryptocurrency. Many investors observed these developments with keen interest, as the market reacted swiftly to the news.

Bitcoin Price Soars Past $117,000 After Fed’s Dovish Signal

On Friday, **Bitcoin price** broke above the critical $117,000 resistance level. This strong move followed Federal Reserve Chair Jerome Powell’s speech at Jackson Hole. Powell’s remarks suggested a potential September **interest rate cut**. Such a cut typically signals a more dovish monetary policy. Therefore, investors often interpret this as bullish for risk assets like cryptocurrencies. The price of **BTC** rose more than 4%. It hit an intraday high of $117,300 on Bitstamp. This was a significant recovery from its six-week low of $111,600. Furthermore, Ether (ETH) also saw a substantial increase, soaring nearly 15% to $4,760.

The market’s reaction was immediate and pronounced. Traders quickly adjusted their positions. This shift reflected a renewed confidence in the **crypto market**. The hint of an **interest rate cut** by the **Federal Reserve** provided a strong catalyst. It pushed digital assets higher across the board. The price action indicated a clear change in investor sentiment. Buyers stepped in aggressively, absorbing selling pressure. This momentum suggests a robust underlying demand for cryptocurrencies.

Massive Liquidations Sweep the Crypto Market

The sudden surge in **Bitcoin price** triggered widespread liquidations. According to CoinGlass data, approximately $379.88 million in short positions were liquidated. This indicates many traders were betting on a price decline. Ether (ETH) accounted for a large portion of these liquidations, totaling $193 million. **Bitcoin** itself saw $56.4 million in short liquidations. These events typically amplify price movements. They force traders to close positions, further fueling the rally. Consequently, the overall **crypto market** experienced significant volatility.

Across the entire market, a total of $629.48 million in both short and long positions were wiped out. This figure highlights the market’s unpredictable nature. The rapid recovery caught many traders by surprise. Over 150,217 traders faced liquidation during this period. Investor sentiment quickly flipped from cautious to bullish. The **Bitcoin** liquidation heatmap provided further insight. It showed price eating away liquidity above $117,000. More than $259.5 million in ask orders were sitting between $117,000 and $118,000. This absorption of liquidity paved the way for further upward movement. Therefore, the market demonstrated its capacity for swift and dramatic shifts.

Analysts Confirm “Uptrend is Back” for BTC

Leading analysts quickly commented on **BTC’s** recent performance. Michael van de Poppe, Founder of MN Capital, noted the importance of the recent price action. He highlighted that **Bitcoin** had swept lows below $112,000. This action provided traders with an excellent entry position. Earlier in the week, van de Poppe advised his X followers to monitor the sweep beneath the Aug. 3 low of $111,900. He considered this a prime area for accumulation. He later confirmed, “A small sweep took place and an immediate massive move upward on #Bitcoin.” Furthermore, he confidently declared, “Uptrend is back.”

Another prominent analyst, Jelle, suggested a potential retracement might follow this pump. However, he emphasized one clear message: “The market wants higher.” This sentiment aligns with several recent forecasts. Many crypto industry participants have shared expectations for higher prices. These predictions reflect a growing confidence in the long-term prospects of the **crypto market**. The overall outlook appears increasingly positive. This renewed optimism is a direct result of recent price movements and macro factors. Therefore, the general consensus points towards continued growth.

Future Outlook: Federal Reserve Actions and Interest Rate Cut Drive Predictions

The future trajectory of **Bitcoin** remains a hot topic among experts. Analyst BitQuant, for instance, maintained his cycle top target of $145,000 for **Bitcoin**. He expects this target to be in play throughout 2025. These long-term predictions offer a bullish perspective. They suggest sustained growth beyond the immediate price surge. Meanwhile, Bitwise’s head of European research, André Dragosch, offered an even more ambitious forecast. During Crypto News Insights’s Chain Reaction daily X spaces show, he discussed a significant development. US President Donald Trump’s move to allow crypto in 401(k) retirement plans could dramatically impact the market. Dragosch believes this policy could push **Bitcoin** to an astonishing $200,000 by the end of the year. The potential for a **Federal Reserve** **interest rate cut** further supports these optimistic outlooks. Such a move would make traditional investments less attractive. Consequently, it could drive more capital into digital assets. Therefore, macro-economic factors play a crucial role in these price targets.

The combination of technical breakouts, analyst consensus, and favorable macroeconomic conditions paints a compelling picture. **Bitcoin’s** recent performance, fueled by the **Federal Reserve’s** signals, indicates strong upward momentum. The liquidation of short positions has cleared significant resistance. This paves the way for further gains. As the **crypto market** continues to mature, institutional interest and broader adoption could accelerate these trends. The prospect of **BTC** reaching new all-time highs, potentially even $200,000, excites investors globally. This bullish sentiment is widespread. It suggests a promising period ahead for digital assets. The market watches closely for further developments.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.