Last night, the Federal Reserve suddenly hit the pause button—quantitative tightening has stopped!

This is a big deal. It’s like your home faucet has been draining water all along, and suddenly it stops—water in the tank starts rising. Powell’s words were vague, but the meaning was clear: I’m not taking money out of the market anymore, keep it for yourselves.

Bitcoin exploded instantly. A 7% surge, price shooting straight to $92,000. Like a balloon holding its breath, suddenly let go and flying off in a whoosh. Market sentiment flipped from cautious to fervent in a heartbeat.

The worst hit were the short sellers.

One moment they were calculating how much they'd make as Bitcoin dropped, the next moment reality slapped them hard. $1 billion in short positions evaporated instantly, liquidation stats were everywhere, and those bearish posts on social media were probably deleted in a hurry.

Analyst Tom Lee was grinning from ear to ear, jumping on camera to say, “See, I told you, once QT stops, Bitcoin heads straight for $200,000—this is just the beginning.”

Put simply: The Fed stopped draining liquidity, and Bitcoin bolted forward like an unbridled horse. Those still hesitating in the market are probably kicking themselves now.

As soon as liquidity loosens, the crypto market’s imagination opens wide. What’s next? Well, the bears probably won’t dare to short so easily again.