Crypto Rises as Oil Prices Drop, Short Sellers Squeezed, and Bitcoin Reclaims Key Level
Cryptocurrencies rose sharply on September 21, driven by a drop in oil prices that eased inflation concerns and lowered Treasury yields. The decline in Brent crude for four consecutive days brought it to $102, reducing expectations of higher interest rates and making non-interest-bearing assets like crypto more attractive. Bitcoin closed the week above its 50-week moving average after 45 weeks below it, triggering a short squeeze worth around $300 million. Bitcoin surged over 5% in one day to trade at $84,702 following a key technical level breakout, while Ethereum and XRP also rose significantly. The broader crypto market saw gains across major coins like Solana, BNB, Zcash, Hyperliquid, and Monero. Despite ETF inflows of only $6 million and stalled U.S. legislation for the CLARITY Act, the rally was primarily fueled by Bitcoin's performance and continued softness in oil prices.
Topics: Bitcoin Ethereum Fed rates oil prices short squeeze