Bitcoin broke above $85,000 for the first time since January as a wave of forced short covering swept the crypto market. Traders closed out $647.9 million in bearish bitcoin-led bets over 24 hours, yet open interest kept rising instead of falling, and Bitcoin ETF inflows and Fed rate-hike odds added further support.
Bitcoin climbed to $84,984 on Monday, up 5.4% over 24 hours, clearing the $82,284 high it set on Sept. 4, CoinDesk reported. The Block confirmed bitcoin briefly touched $85,000 in the same session, its highest level since January, after trading near $75,000 as recently as Sept. 15.
Short squeeze forces out $647.9 million in bets
The move reflects a short squeeze more than fresh buying conviction. Over 24 hours, $746.6 million in crypto positions were liquidated, with $647.9 million of that in short bets, CoinDesk reported, citing Coinglass data. Bitcoin shorts made up $277.5 million of the total and ether shorts $122.8 million. The Block, citing its own CoinGlass figures, put the day's shorts at $648.3 million of more than $750 million liquidated, with bitcoin positions accounting for $360.7 million — including an $11.3 million order on Binance's BTCUSDT market, the largest single liquidation of the day.
Open interest keeps climbing despite the squeeze
Even as bears were forced out, open interest across crypto markets rose 7.59% to $156 billion, while 24-hour trading volume jumped 39% to $224 billion, CoinDesk said — a combination that suggests traders are replacing closed-out positions rather than retreating. Bitcoin's own futures open interest topped 700,000 BTC for the first time in weeks, pointing to renewed demand for leverage as the rally builds.
Fed rate odds and ETF inflows add support
Bitcoin is still about 32.5% below its October all-time high near $126,000 and down less than 3% year-to-date, The Block noted, even after Monday's gain. However, sentiment has firmed since last week's Federal Reserve rate hike, with markets now pricing roughly a 56% chance of another rate rise in October. Cointelegraph reported that US spot Bitcoin ETFs took in $435 million of net inflows on Friday, their largest daily total since Sept. 3, as investors added exposure during last week's climb toward $81,000.
Sources: CoinDesk, The Block, Cointelegraph
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