Crypto Market Turns Green Overnight: What’s Happening?

The crypto market surprised traders with a sharp overnight rebound. $Bitcoin staged a powerful reversal from its liquidity-driven sell-off, flipping the entire market green while major macro signals hit global markets.
From whale-driven stop hunts to a sudden rotation out of gold and back into Bitcoin, the landscape shifted fast — and retail traders were once again caught off guard.

Here’s a breakdown of what happened and why the charts look completely different this morning.

Whale Games Trigger a Major Liquidity Sweep

The first catalyst behind the volatility wasn’t news — it was liquidity manipulation.

A sharp drop hit Bitcoin during fears around Japan’s yield decisions, triggering:

$BTC −8% crashAltcoins −10% dropMassive liquidations on both sides

This followed the typical whale pattern:

Crash the market → liquidate longsReverse the price → liquidate shortsAccumulate liquidity at the bottom

Minutes after the sweep, Bloomberg reported that Vanguard may allow clients to buy crypto ETFs — a headline perfectly timed with Bitcoin’s rebound. Retail lost; smart money won.

Markets React to a Major Macro Shake-Up

A few hours later, traders woke up to a major macro shift: President Trump has selected Kevin Hassett as the new Federal Reserve Chair.

This instantly reshaped market expectations:

More rate cuts likelyHigher liquidity in 2025Risk appetite returning

Crypto tends to thrive when monetary policy loosens — and the charts reacted accordingly.
Bitcoin surged as traders priced in a more accommodative Fed path.

Gold Dumps While Bitcoin Pumps: Capital Rotation Begins

Another key signal appeared in the charts:
Gold sold off sharply while Bitcoin accelerated upward.

This is a classic risk rotation:

Investors take profit from safe-haven assetsCapital flows into growth assets like BTCMomentum shifts towards higher-beta markets

Historically, gold outflows into Bitcoin have preceded major BTC rallies — and this pattern is repeating.

Bitcoin Price Analysis: BTC Price Reclaims a Key Zone

BTC’s V-shaped recovery shows clear strength from larger players.

BTC/USD 1-hour chart - TradingView

Here’s what the chart is signaling:

Strong bounce from liquidity zoneHigher lows across lower timeframesVolume building on green candlesGold/BTC divergence confirming bullish risk sentiment

If momentum holds, the next likely upside targets are:

🔼 $95,000
🔼 $98,500
🔼 $102,000 (psychological level)

Downside zones remain:

🔻 $88,000
🔻 $85,000

Short-term conditions now favor continuation.