Bitcoin Soars Above $85K as $648M in Crypto Shorts Get Liquidated

Bitcoin reached new heights on Monday morning, breaking through $85,111 and marking a 5.7% increase over the past 24 hours, according to CoinGecko data.

The cryptocurrency was able to push through its resistance band, which it had been testing for a week, after absorbing a Federal Reserve rate hike, a Bank of Japan rate hike to a 31-year high, and the Senate's rejection of the Clarity Act without trading meaningfully below $75,000.

Nexo analyst Iliya Kalchev explained that external pressure has since eased, with Middle Eastern crude exports holding up better than forecast, sending Brent to a half-month low. The 10-year Treasury yield also fell back below 5% after spiking above it on the day of the decision.

The rise in Bitcoin was accompanied by the liquidation of $648 million in crypto shorts across the market in 24 hours, with over $230 million of those coming from short positions. This surge in buying power helped push the price through key resistance levels and reclaimed its 50-week moving average.