Bitcoin Breaks Above $87,000 on ETF Frenzy and Short Squeeze
The Bitcoin price surged above $87,000 to an eight-month high, driven by a combination of factors including ETF inflows, short squeeze, and improving macroeconomic sentiment.
Vikas Gupta, Country Manager - India at Bybit, attributed the recovery to renewed institutional demand, stronger spot ETF inflows, and evolving US regulatory developments. He noted that Bitcoin's recent price action has been supported by a reduction in bearish positioning and sustained by strong ETF inflows of over $3.5 billion.
Avinash Shekhar, Co-founder and CEO of Pi42, said the decisive move beyond the $80,000 resistance has strengthened the near-term outlook for Bitcoin. However, he cautioned that profit-booking could lead to intermittent volatility.
Crypto markets saw significant liquidations during the rally, with about $1 billion in long and short positions across digital assets being liquidated over 24 hours. This was the highest level since late August, with short positions accounting for about $878 million of the liquidations.