Bitcoin short sellers surprised by White House's latest move.

Over $530 million in Bitcoin ( BTC ) Short positions were liquidated in just hours after the White House nominated Kevin Warsh – a Bitcoin supporter – as Chairman of the Federal Reserve. This event caused a strong surge in the crypto market.

In just 12 hours, Bitcoin surged by approximately 9%, adding $123 billion to its market Capital . During the same period, Ethereum (ETH) also rose by 11%, with its market Capital increasing by $26 billion.

Retail investors were surprised when Bitcoin shorted the White House officially nominated a Fed chairman who supports BTC.

Bitcoin has broken back above the psychological $73,000 mark and is trading around $73,413 at the time of writing.

This price surge has triggered a wave of continuous Short position liquidation in the Derivative market. According to Coinglass data, nearly $30 million worth of Short positions were wiped out in just one hour, bringing the total liquidation value in the past 24 hours to $530 million.

Investors who Short Bitcoin and Ethereum were trapped when prices unexpectedly surged, forcing them to buy back to cut their losses, further fueling the market's upward momentum.

Warsh's nomination became a major driving force.

The source of this growth wave originates from the United States. The White House has officially nominated Kevin Warsh, a former member of the Federal Reserve Board of Governors and a well-known supporter of digital assets, to serve as Chairman of the Fed for the next four years.

“Kevin Warsh of Florida has been nominated to serve as Chairman of the Federal Reserve Board of Governors for a four-year term. Kevin Warsh of Florida has also been nominated to serve as a member of the Federal Reserve Board of Governors for a fourteen-year term, beginning February 1, 2026,” the announcement stated .

Notably, the gap between Bitcoin and traditional safe-haven assets like gold is widening. Bitcoin's price has risen by nearly double digits, while gold has fallen by 3%. This indicates a shift in Capital flows from traditional assets to digital assets.

The nomination of Mr. Warsh, along with Michael Saylor's public statements – who has shown a tendency to buy Bitcoin far exceeding his selling – demonstrates that the crypto market is increasingly dominated by macroeconomic policy decisions and the actions of large institutions.