Bitcoin Leads Crypto Market Rebound Above $85K as Short Liquidations Accelerate

Crypto markets experienced a significant rebound on Friday, with the total market capitalization reaching $3.042 trillion. Bitcoin led the charge, surpassing the $85,000 level and pushing towards $86,000. This advance was driven by a sharp short squeeze, which resulted in over $200 million in short positions being liquidated over the past 24 hours.

Riya Sehgal, a research analyst at Delta Exchange, attributed the momentum gain to easing US Treasury yields and an aggressive short squeeze. She noted that despite $150 million in Bitcoin ETF outflows, the latest advance was driven more by technical momentum and market positioning than renewed institutional flows.

Bitcoin's trading volume over the past 24 hours stood at $38.69 billion, with the cryptocurrency trading between $83,181.61 and $86,794.25. Its weekly trading range was $82,581.43 to $86,794.25. At current levels, Bitcoin remained about 31% below its all-time high of $126,080, with a total market capitalization of approximately $1.727 trillion.