Massive $319M Short Wipeout Lifts Bitcoin as Investors Monitor U.S.-China Diplomatic Developments

Bitcoin Jumps Past $112K as $319M in Shorts Are Liquidated; Market Eyes U.S.–China Developments and Fed Decision

Bitcoin (BTC) extended its weekend rally, breaking through $112,000 on surging trading volume before consolidating near $114,500 late Sunday (UTC). Data from CoinGlass indicated that $319 million in short positions were liquidated over 24 hours as bearish traders were squeezed out.

At 23:35 UTC on Oct. 26, Bitcoin traded around $114,501, maintaining its upward trajectory as traders digested fresh U.S.–China trade updates and positioned for this week’s Federal Open Market Committee (FOMC) policy announcement.

Breakout Momentum

According to CoinDesk Research, Bitcoin rose from $111,453 to $113,572, driven by a 318% jump in trading volume around 09:00 UTC, which helped BTC pierce the $112,000 resistance level.

The breakout extended into midday, printing a series of higher highs before cooling into a tight range between $113,550 and $113,720. Price action showed immediate resistance near $113,700–$113,733 and support around $113,300, indicating short-term consolidation after the surge.

Liquidations Surge

Across exchanges, CoinGlass recorded total liquidations of $393.74 million during the period, including $319.18 million from short positions and $74.45 million from longs. The single largest liquidation involved a $19.04 million BTC-USD position on Hyperliquid.

The skew toward short liquidations reflected a classic short squeeze, where traders betting against the market were forced to unwind positions rapidly — a dynamic that often accelerates upward momentum once major resistance levels break.

U.S.–China Consultations Signal Progress

Between 12:29 and 12:36 UTC, the Chinese Embassy in Washington posted a series of updates on X summarizing “candid, in-depth and constructive” trade consultations held in Kuala Lumpur between Vice Premier He Lifeng, U.S. Treasury Secretary Scott Bessent, and U.S. Trade Representative Jamieson Greer.

Discussions covered:

• Section 301 measures on China’s maritime, logistics, and shipbuilding sectors,
• The potential extension of reciprocal tariff suspensions,
• Fentanyl-related cooperation,
• Agricultural trade, and
• Export control coordination.

The embassy said both sides had “reached basic consensuses” and would refine agreements through domestic processes. He Lifeng emphasized that stable trade between the U.S. and China “serves both nations,” calling for continued dialogue on equal terms.

A follow-up post said both sides would maintain close communication and promote stable, sustainable trade relations, signaling continuity in talks rather than immediate policy actions.

Trump–Xi Meeting Set for APEC Summit

On Friday, CNBC reported that the White House expects President Donald Trump and President Xi Jinping to meet on Oct. 30 during the Asia-Pacific Economic Cooperation (APEC) Summit. The meeting aims to ease trade tensions and advance negotiations.
Trump expressed optimism, saying, “We are going to come out very well.”

Markets Turn to the Fed

The Federal Reserve’s two-day FOMC meeting concludes on Oct. 29, followed by a press briefing from Chair Jerome Powell. Traders will be watching for signals on interest rate direction, balance sheet policy, and the tone of the Fed’s guidance.

For Bitcoin and other risk assets, a dovish or data-dependent tone could reinforce bullish sentiment, while a hawkish stance may test the current rally’s strength heading into November.