Bitcoin Surges Past $86K, Triggers $929M in Liquidations

Crypto liquidations have reached a staggering $929.14 million as Bitcoin surged above $86,000 for the first time in eight months.

The rapid price increase caught many traders off guard, triggering a massive short squeeze that led to the liquidation of around $648 million in short positions across the crypto market.

According to on-chain data from Santiment, 62,335 wallets holding 0.1 to 1 BTC and 7,159 wallets holding 1 to 10 BTC disappeared during the July and August market sell-off, suggesting that many smaller holders gave up their positions as Bitcoin faced months of price pressure.

The large drop in smaller wallets came before Bitcoin recovered above $80,000 and later pushed past $86,000, making it easier for larger buyers to absorb the available supply.