BTC Price Sets New All-Time High Near $77K Amid ‘Long Squeeze’ Fears

Bitcoin (BTC) hovered around $76,000 on November 8 due to “high liquidity” in the spot price.

Bitcoin accepts the Fed price on the trip to $77 thousand

Data from Cointelegraph Markets Pro and TradingView showed moderate BTC price gains after the daily close.

These came on a similar note to the previous day, which saw Bitstamp hit new all-time highs below $77,000 on Wall Street's sudden push during the trading session.

The volatility came as the US Federal Reserve cut interest rates by an expected 0.25 percent.

After the recent meeting of the Federal Open Market Committee (FOMC), Fed Chairman Jerome Powell stated that the two risk factors affecting the inflation and employment mandate are “in the balance”.

“According to the latest indicators, economic activity continues to expand at a strong pace. Since the beginning of the year, the labor market situation has generally decreased and the unemployment rate has increased, but it is low,” he summarized in prepared comments.

“Inflation has made progress on the Committee's 2 percent objective, but is somewhat higher.”

As Cointelegraph reports, markets were not in two minds over the Fed's approach. On November 8, according to data from the CME Group's FedWatch tool, consensus favored a further 0.25% cut at the next FOMC meeting in mid-December.

Commenting, Marketing Resources argued that the Fed's “pivot” on interest rates could still be at risk if long-term inflation trends continue to rise.

“Ultimately, we expect to follow long-term inflation rates that have not yet peaked,” he wrote in a series on X.

“But if these start to increase by 2.1% now, we believe the ‘Fed pivot' will be at risk. This is a big if, but as we head into 2025, anything is possible.

“High consumption liquidity” threatens the price of BTC

Meanwhile, Bitcoin showed no concern on macroeconomic minutes, setting new all-time highs and nearing daily highs.

Related: Bitcoin Could Go ‘Parabolic' With BTC Price Over $71.5K Weekly – Analysis

BTC/USD is up 8% month-over-month at the time of writing, with Q4 gains sitting at 19.6%, according to data tracked by CoinGlass.

CoinGlass data also shows that prices on both sides of the exchange's books have built significantly.

The platform responded to “high liquidity” in its X account, suggesting that not trading would be the “best strategy” in the current climate.

“Waiting for a little pump before this overheated market will make an adjustment,” noted trading label Crypto Mutant, discussing the liquid changes.

“During the correction, the 72,600 levels should be maintained to maintain positive sentiments.”

Fellow trader CrypNuevo saw the potential for a “long squeeze” — a long run of BTC liquidity — ahead of the weekly close.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.