Bitcoin Tops $120K, Triggering $400M in Liquidations

In the derivatives market, BTC futures are flashing bullish signals with open interest reaching a record high of $32.6 billion, suggesting traders are positioning for further upside. On-chain analyst Skew noted that short positions are also piling up, which could create an opportunity for a short squeeze.

Traders will be particularly focused on the next Fed meeting at the end of this month, which could happen without access to a fresh jobs report amid the government shutdown. Treasury Secretary Scott Bessent told CNBC on Thursday that the shutdown could further weaken the economy

We could see a hit to the GDP, a hit to growth and a hit to working America,” he said. Though historically the impact of a government shutdown on the economy has been minor, President Donald Trump’s threat to fire roughly 750,000 federal workers could have an effect in the current climate. Appetite for crypto could also be fueled by hopes for an incoming altcoin season as several applications for altcoin-related spot exchange-traded funds (ETFs) will likely see approval once the government reopens.

Canary Capital’s Litecoin ETF is due for a response today with others facing deadlines between Oct. 10 and 24. The Securities and Exchange Commission (SEC), however, confirmed on Wednesday that it will not review any applications during the shutdown. Similar to bitcoin, altcoins were trading higher over the past 24 hours, led by DOGE which was up nearly 3%.

The CoinDesk 20 Index, which tracks the performance of the 20 largest crypto assets, is 1.5% higher over the same period. Paul Howard, senior director of crypto trading firm Wincent, was skeptical earlier this week about bitcoin’s rebound, but he flipped bullish seeing the strength of the past days’ advance.