In the past 24 hours, Bitcoin has experienced a significant surge, with its price rallying above the $69,000 mark. This surge led to over $28 million in short liquidations for Bitcoin positions alone. Moreover, the broader cryptocurrency market saw liquidations totaling more than $198 million during this period, according to data from Coinglass.

This rally coincided with the release of US inflation data on Wednesday, which revealed that the headline Consumer Price Index (CPI) increased by a lower-than-expected 3.3% year-over-year in May, as opposed to the 3.4% anticipated by economists, based on FactSet data.

The attention now shifts to the US Federal Reserve's rate-setting meeting, where it is widely expected that the current interest rate of 5.25% to 5.50% will be maintained, rather than implementing a rate cut. CME Group forecasts a 99.4% probability of this outcome. However, a Reuters poll of economists suggests that the Fed may reduce rates twice this year, starting in September.

Aurelie Barthere, a Principle Research Analyst at Nansen, commented on the situation, suggesting that the Fed is likely to revise growth projections downward and remove some rate cuts to align with market expectations.

"We think that Powell will sound as dovish as he can be considering the data, in the press conference, his tone has diverged from the rest of the Committee's stance lately," Barthere told The Block.

In response to these developments, Bitcoin is currently trading around $69,300, marking a more than 3% increase in the past 24 hours, as reported by The Block’s price page. Ether, the native cryptocurrency of the Ethereum network, has also seen a rise of over 2%, reaching $3,635 in the same period.