After struggling to break $80,000, bitcoin surged more than $2,000 in four hours, peaking above $81,800 and eyeing the $82,000 mark.
On May 14, bitcoin reversed course, wiping out losses incurred 48 hours earlier after jumping by approximately $2,000 during a frenzied four-hour window. Market data showed the cryptocurrency spent much of the late May 13 session and Thursday morning struggling to breach the $80,000 mark. However, shortly after 8 a.m. EDT, bitcoin experienced a steep ascent, peaking just above $82,000.
At the time of writing (1 p.m. EDT), bitcoin was trading around $81,500 and appeared poised to test the $82,000 level again. The surge drove 24-hour gains of 3.5% and its market capitalisation to $1.63 trillion, helping lift the broader crypto economy’s market cap to close to $2.8 trillion.
The sudden rally resulted in $70.5 million in short bets being liquidated in 24 hours, compared to $14 million in long bets. Overall, the cryptocurrency market saw $236 million in leveraged positions wiped out, with shorts accounting for $145 million.
Bitcoin’s rebound, mirrored on Wall Street, came hours after it was weighed down by the latest U.S. inflation figures. Though largely expected, the magnitude of the increase—particularly in the producer price index (PPI)—suggested the Middle East conflict and the closure of the Strait of Hormuz are having a larger impact on the U.S. economy than anticipated.
