BitcoinMarkets
|3 min ReadBitcoin jumps past $115,000 as shorts get squeezed
Maya Chen
Senior Analyst
Published
Jan 16, 2026
Macro optimism and rate bets lift risk appetite
Bitcoin, ether, and other majors climbed on Sunday night as traders embraced easing macro worries and a wave of liquidations. According to The Block’s crypto price page, bitcoin rose 3 percent in the past 24 hours to 4,187. XRP and BNB added about 2 percent each. Solana rose 5.7 percent.
“These price movements are not isolated spikes but part of a broader, sustained trend supported by macroeconomic tailwinds, tightening on chain supply, and strong technical indicators,” said Rachael Lucas, crypto analyst at BTC Markets.
Multiple outlets reported that the United States and China have a preliminary framework for a potential trade deal when Donald Trump and Xi Jinping meet in South Korea this Thursday. “Markets are responding positively to the prospect of improved U.S.–China relations, which could ease global supply chain constraints and support risk assets, including digital currencies,” Lucas said.
The Federal Open Market Committee meets Tuesday and Wednesday. Many expect another rate cut. The CME Group’s FedWatch Tool shows a 96.7 percent chance of a 25 basis point cut to 3.75 to 4.00 percent.
Short liquidations fuel the move
As prices rebounded on positive signals, shorts were forced to cover. It was reported earlier that $160 million in short bets were liquidated in just 30 minutes. “Millions in short liquidations indicate a classic short squeeze where bearish traders were forced to cover as prices surged, accelerating the move upward,” said Vincent Liu, CIO at Kronos Research. “Crowded short positioning meets sudden bullish momentum, amplifying volatility to the upside.”
Coinglass data showed about 195 million in the past four hours. “Most liquidations occurred in BTC and ETH perpetual contracts, triggered by a modest price increase,” Lucas said. “This reflects a classic short squeeze dynamic and may signal the start of a more sustained bullish phase.”
Traders eye a year end Santa Rally
Analysts flagged the usual year end pattern. “Given the historical precedent of the Santa Rally, we anticipate a continuation of bullish momentum leading up to year end, particularly following the 2024 halving cycle,” LVRG Research Director Nick Ruck told The Block.
BTC Markets’ Lucas said a 15 to 25 percent rally from here is plausible, with bitcoin potentially reaching 150,000 by the end of 2025. Bitcoin’s all time high stands at $126,080. “The ‘Santa Rally’ hinges on holiday liquidity, portfolio reshuffling, and bullish sentiment,” Kronos Research’s Liu said. “With macro cues from FOMC and PCE reports, alongside anticipated rate cuts and trade optimism, upward momentum seems likely, though volatility could persist amid shifting macro dynamics.”
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