Bitcoin and ether led crypto markets higher late on Tuesday ahead of Wednesday’s Federal Open Market Committee meeting, setting off a cascade of liquidations for traders betting on lower prices.

Bitcoin rallied 5% to an intraday high of $94,601 within a span of two hours, while ether surged 9.7% over the same period. 

This story is an excerpt from the Unchained Daily newsletter.

Data from Coinglass shows that more than $300 million worth of shorts were liquidated across crypto markets, with bitcoin and ether positions accounting for the majority.

“The Federal Reserve decision this week, followed by the Bank of Japan next week, will be key in shaping rate differentials and cross-asset volatility into year-end,” said Wintermute over-the-counter trader Jasper De Maere in a post on X. 

“In the absence of a decisive macro surprise, crypto is likely to remain range-bound, with volatility driven more by liquidity and positioning than fundamentals.”