Crypto Market Surges Past $3 Trillion Amid Strong Short Squeeze

The cryptocurrency market is experiencing a significant surge, with the total crypto cap reaching over $3 trillion and approaching its previous high of $3.3 trillion set in mid-January.

This move has been driven by several factors, including the strongest single-day short squeeze in over a month, where traders liquidated more than $900 million in short positions on September 21st, according to Coinglass.

The previous major squeeze occurred on August 21st, when traders closed more than $1.25 billion in short positions, followed by nearly four weeks of consolidation with Bitcoin remaining below $80k.

Early rally FOMO seems to be feeding into the move, and similar to the August cycle, BTC ETF flows have turned positive, with $1 billion in net inflows on September 21st.