Bitcoin Soars Past $85,000 Amid Derivatives Market Short Squeeze

Bitcoin surged past $85,000 on September 21 and 22, fueled by a short squeeze in the derivatives market. This sudden price jump lifted crypto-related stocks despite mixed U.S. stock market performance and rising Treasury yields.

The digital currency's rally pushed its price above its 50-week moving average for the first time in 45 weeks. Crypto-linked equities also saw notable gains, with companies like Strategy, Coinbase, and other crypto exchanges experiencing increased activity.

Shares of SoFi Technologies initially rose but later traded flat due to its modest crypto revenue. The company's net crypto revenue totaled $2 million in the first half of 2026, meaning its stock movements mainly reflect investor sentiment around cryptocurrencies.