Crypto prices saw a unique surge shortly after the U.S. stock market opened on Wednesday, with bitcoin rising above the $90,000 mark for the first time since the previous weekend.
Key bullish factors included significant increases in metals prices, with silver up approximately 5% to a new high of over $66 per ounce. Gold and copper also saw gains exceeding 1%.
Current Federal Reserve Governor Chris Waller, now a frontrunner in prediction markets for the next chairman position, made dovish comments, indicating that the neutral fed funds rate is potentially 50-100 basis points below its current level. He mentioned that the U.S. economy is nearing zero job growth and does not anticipate a resurgence in inflation.
Data from Coinglass shows a decline in open interest from 669k BTC to 665k BTC as prices climbed. This indicates that short positions are being covered rather than new leverage entering the market. The shift appears to be a delveraging rally, fueled by short positions closing down instead of new long positions being taken.
