Bitcoin Surges Past $85,000 as Shorts Close Ahead of Jobs Report

Bitcoin reclaimed $85,000 on October 2 before the United States released its September employment report. The rally arrived with reports of short positions closing and a softer dollar, but traders buying back losing shorts are not the same investors as those adding Bitcoin for months.

The distinction between these two groups will matter after the jobs release changes the bond market's view of the Federal Reserve. A trader closing a short position is required to buy, creating buying pressure in the relevant market. However, this does not necessarily reflect a long-term view that Bitcoin is undervalued.

A fresh spot buyer also lifts offers, and the resulting price chart may look similar at first. However, if new longs arrive, open interest may hold or grow, whereas closing short futures can lead to falling open interest while prices rise.