Bitcoin Rallies Past $81K as Short Squeeze Wipes Out $415M

Bitcoin's price surged past $81,000 on Thursday, driven by a short squeeze that wiped out over $415 million in short positions across crypto derivatives. This marked a nearly 5% 24-hour gain and pushed the cryptocurrency's market capitalization back above $1.62 trillion for the first time in September.

The sudden price increase was triggered by a shift in institutional and retail sentiment, with investors increasingly viewing Bitcoin as a hedge against inflation and broader financial contagion driven by persistent energy market volatility.

However, some bearish analysts caution that Bitcoin's rebound may be nearing exhaustion due to its sharp rejection near the critical $83,000 resistance zone. This 'bull trap' scenario could lead to a distribution phase, where retail investors chasing momentum provide exit liquidity for institutional traders and whales unwinding positions.