Bitcoin Sprints Past $86K as Short Liquidations Fuel Breakout
Bitcoin broke past $86,000 on Monday for the first time since January, putting US spot ETF holders back above their estimated break-even price of around $81,722 per coin. The average cost basis for these investors has been a point of concern all year, with many holding a paper loss due to the high prices.
The move was largely driven by short liquidations, with traders losing about $648 million in short positions over 24 hours. However, net taker volume on Binance climbed from $11 million to $618 million within an hour, indicating some level of buying interest.
Experts are cautious about the breakout, with Glassnode stating that a sustained close above $86,000 is needed to confirm the move. They also note that long-term holders have been accumulating in this price range, with around 1.05 million BTC bought near $85,000.