Bitcoin Surges to 8-Month High on Short Squeeze and Corporate Buying

Bitcoin's price surged to an eight-month high of $87,395 on September 21, with the cryptocurrency climbing to its strongest level since January 29. The sudden rise was largely attributed to a short squeeze in Bitcoin, where traders who bet against price growth were forced to buy back coins to close losing trades.

Market data revealed that over $746 million in total crypto liquidations occurred within 24 hours, with nearly $648 million of those being Bitcoin short bets. This significant buying pressure pushed sentiment up across crypto trading desks.

In addition to the short squeeze, large corporate treasury firms Strive and Strategy (MSTR) entered the market, adding to the buying power. Strive acquired 1,355 Bitcoin for approximately $107.7 million between September 14 and 18, lifting its total holdings to 26,355 coins.

Spot Bitcoin ETF inflows also reached a record high on September 21, with U.S. spot exchange-traded funds bringing in $998.95 million, marking their best single day since October 2025.