Short Squeeze Explosion Due to Trump?...XRP and Dogecoin Rally Alongside Bitcoin

▲ Bitcoin (BTC), economic indicators, US Federal Reserve (Fed)/ChatGPT generated image

Bitcoin (BTC), Ethereum (ETH), XRP, and Dogecoin (DOGE) rebounded after remarks by former US President Donald Trump regarding Iran. Expectations of easing geopolitical tensions revived investor sentiment across risk assets, leading to a simultaneous rise in cryptocurrency and stock markets.

Benzinga reported on May 20 (local time) that major cryptocurrencies rebounded along with the stock market on Wednesday, and Trump's latest remarks on Iran helped de-escalate geopolitical tensions. Bitcoin broke through the $78,000 resistance level, and its 24-hour trading volume recently increased by approximately 6%. Ethereum rose to $2,150 overnight, while XRP and Dogecoin also showed significant upward trends.

According to CoinGlass data, over $260 million was liquidated in the past 24 hours, with liquidations primarily concentrated in short positions. Bitcoin's open interest slightly increased by 0.75%, and Binance's retail investors and whale derivative traders maintained a bullish stance on Bitcoin. The Crypto Fear & Greed Index improved from 'Extreme Fear' to 'Fear'.

The global cryptocurrency market capitalization was recorded at $2.55 trillion, a 0.30% decrease in the past 24 hours. As of 9:25 PM ET, as noted in the article, the 24-hour gains for major cryptocurrencies were: Bitcoin 1.40%, Ethereum 1.43%, XRP 1.67%, Solana (SOL) 2.68%, and Dogecoin 1.65%. Among cryptocurrencies with a market cap of over $100 million, Wrapped HYPE (WHYPE) rose by 32.40%, Jito (JTO) by 31.55%, and Block Street (SAHARA) by 25.76%.

The stock market also rebounded strongly on hopes for a ceasefire. The Dow Jones Industrial Average closed up 645.47 points, or 1.31%, at 50,009.35. The S&P 500 rose 1.08% to 7,432.97, and the tech-heavy Nasdaq Composite Index finished up 1.54% at 26,270.36. President Trump recently toned down his war-related rhetoric, stating that the US is in the final stages of negotiations with Iran and would give diplomacy a chance.

However, the Federal Reserve's April meeting minutes left a burden on the market. According to the minutes, a majority of Fed officials believed that interest rate hikes might be necessary if inflation worsened due to Middle East conflicts and price growth continued to exceed 2%. While expectations of easing geopolitical tensions led to a short-term rebound, monetary policy uncertainty remained a factor limiting the upside of the cryptocurrency market.

Crypto analyst Ali Martinez highlighted $77,800 as a price level to watch for Bitcoin. He analyzed, "A clear break above $77,800 is crucial," adding, "If this price level turns into support, Bitcoin could accelerate towards $79,000." Conversely, if resistance holds, $76,900 and $76,000 could become key support levels. CryptoQuant assessed that Ethereum's break below a triangular pattern indicated a shift to a seller-dominated zone, and predicted that if Ethereum fails to recover the broken triangular structure, selling pressure could increase further, targeting the $1,350 support level.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*