Bad News Stops Working for Bitcoin: Price Reverses Amid Hostile Macro Week

Bitcoin briefly topped $81,000 last Friday despite an unusually hostile macro week, which typically would have put downward pressure on crypto prices.

The Senate failed to advance the CLARITY Act, the Federal Reserve raised its target range by 25 basis points, and the Bank of Japan increased its policy rate. Additionally, the U.S. Dollar Index moved above 100, Brent crude remained above $100 per barrel, and regulatory uncertainty added another constraint.

However, instead of extending its earlier decline, BTC reversed from around $76,000 and briefly traded as high as $81,253 on Friday. The reversal was not driven by new long positions but rather the closure of short positions, which accelerated the price move.

The derivatives market shows that $530 million in leveraged crypto positions were liquidated over 24 hours, with shorts accounting for approximately $470 million. This is consistent with position compression, where traders positioned for additional downside were forced to close as Bitcoin accelerated higher.