Bitcoin Price Surge as Economic Factors Relieve Market Stress

The cryptocurrency markets have kicked off the week with a significant increase, driven by a unique set of favorable macroeconomic conditions.

As reported by CryptoSlate, Bitcoin has surged to a new intraday peak exceeding $116,000, stabilizing around $115,587 at the time of this report. This marks its highest price in weeks and indicates it is approaching its previous record.

Ethereum followed suit, nearing the $4,200 mark, while Solana surpassed the $200 threshold. Other major cryptocurrencies including BNB, Cardano, Chainlink, and Hyperliquid experienced notable gains during this period.

This collective upward movement indicates a resurgence of momentum following several days of market exhaustion and consolidation among various altcoins.

Factors Behind Bitcoin’s Price Increase

On-chain metrics suggest that the recent surge is backed by more than just speculation.

Data from Glassnode reveals that, for the first time since the sell-off on October 10, the cumulative volume delta (CVD) of spot and futures has leveled off. This change indicates that aggressive selling pressure has diminished after nearly two weeks of capitulation.

Concurrently, funding rates remain below the neutral mark of 0.01%, signaling that traders are not overly leveraged in anticipation of price increases. In fact, funding rates dipped into negative territory on several occasions over the last two weeks, reflecting a market still recuperating from recent volatility.

The sentiment indicated by short-dated options skew also shows that attitudes were highly pessimistic just prior to the market’s upswing, a scenario that often signals strong reversals.

Favorable Macro Indicators for Bitcoin

Timothy Misir, head of research at BRN, informed CryptoSlate that macroeconomic narratives significantly contributed to Bitcoin’s recent rise.

He noted that discussions surrounding a US–China trade framework and indications of a more accommodative stance from the Fed have reduced risk premiums, prompting capital to flow into cryptocurrencies.

The resulting rally, he elaborated, has become heavily reliant on news cycles, where positive announcements can trigger substantial price movements while any policy reversal could lead to rapid declines.

Additionally, Misir highlighted that this rebound has caused a wave of liquidations in the derivatives markets.

Data from Coinglass indicates that approximately $365 million in short positions were liquidated within hours, impacting over 100,000 traders. Bitcoin short positions alone accounted for nearly $174 million of these liquidations.

In light of this, Misir pointed out that the combination of macroeconomic easing and forced short covering resulted in a “brief, but intense risk-on phase.”

Notably, institutional investors such as ETFs, corporate treasuries, and mid-sized whales have played a critical role in absorbing sell-side pressure, helping to maintain momentum. Nevertheless, he warned that the market’s structure remains delicate, as options and futures positioning could expose it to volatility from news announcements.

Misir concluded:

“Consider any breakout above $116,000 as a potential liquidity magnet, while a decline below $108,500 should be viewed as a tactical sell signal.”