Bitcoin rebounds above $57,000 ahead of Trump-Harris debate

Quick Take

After dropping to $52,500, Bitcoin rebounded above the $57,000 mark, triggering significant short liquidations.

Analysts highlighted that upcoming U.S. political events, economic data, and the Fed’s interest rate decisions could impact bitcoin price movements.

After hitting a recent low of $52,500 last Friday, bitcoin has rebounded above the $57,000 mark, with the price volatility sparking a wave of short liquidations.

In the past 24 hours alone, $45 million worth of bitcoin positions were liquidated, with shorts accounting for the majority at $36 million. The wider cryptocurrency market experienced over $126 million in liquidations during the same period. Of these combined crypto liquidations, the vast majority — around $93 million — were short positions, according to Coinglass data.

Following today's bitcoin price uptick, BRN analyst Valentin Fournier told The Block that if the digital asset surpasses last Tuesday's local high of $59,750, it could indicate the start of a sustained bullish trend. However, he added that this depends on two key factors: Donald Trump's performance in tonight's debate against Kamala Harris and Wednesday's Consumer Price Index (CPI) reading, which might offer clues about the scale of a potential rate cut by the U.S. Federal Reserve at next week's Federal Open Market Committee (FOMC) meeting.

"Breaking above the $59,750 resistance level would be a strong signal of a potential bullish trend, and positive inflation-related news could further fuel this upward momentum," Fournier said. However, he noted that market volatility remains high, and further price declines are possible, especially as the Federal Reserve's interest rate decision approaches on September 18. "There is potential for a 'buy the rumor sell the news' dynamic around the inflation numbers and incoming interest rate cuts," he added.