Bitcoin Surges Past $85,000 on Wave of Short Liquidations
Bitcoin surged above $85,000 on Monday, marking its highest level in eight months. The rally came as short liquidations, renewed spot ETF demand, and improving market sentiment combined to push BTC through the $80,000 resistance zone.
The Bitcoin price reached an intraday high of $85,438 on September 21, according to CoinCodex data. This move above the $85,000 mark extends Bitcoin's recovery from its recent lows after its bullish run in August.
Several factors contributed to the overnight price spurt for Bitcoin. A large wave of short liquidations triggered the move higher, with over $780 million in crypto positions liquidated over 24 hours, including $431 million in short positions in Bitcoin-linked futures alone.
The buying added upward pressure and triggered further liquidations, creating the conditions for a short squeeze. This rally also followed renewed demand for US spot Bitcoin ETFs, which recorded $433 million in net inflows on Friday after heavy outflows earlier in the week.