Bitcoin Surpasses $85,000 Amid $648 Million Short Squeeze
Bitcoin reached $84,984, marking a 5.4% increase in 24 hours, largely due to a short squeeze that liquidated $648 million in bearish positions. Open interest in the market rose by 7.59% to $156 billion, indicating active trading despite the liquidation of these positions.
Market Movement
Bitcoin (BTC) surged to $84,984 on Monday, reflecting a significant 5.4% gain over the previous 24 hours. This increase places Bitcoin above the previous high of $82,284 recorded on September 4.
Short Squeeze Details
The recent price movement has been primarily driven by forced buying rather than new market confidence. Over the past day, liquidations totaled approximately $746 million, with $647.9 million attributed to short positions. Notably, $159.9 million of these short positions were liquidated in just the last hour, with Bitcoin shorts comprising $277.5 million of the total liquidated amount, while ether shorts accounted for $122.8 million, according to Coinglass data.
Trading Activity
Despite the closure of bearish bets, open interest in the market increased by 7.59%, reaching $156 billion. Additionally, trading volume for Bitcoin rose by 39% to $224 billion, suggesting that traders are actively replacing liquidated positions rather than withdrawing from the market.
Broader Market Context
The CoinDesk 100 index saw 95 of its 100 constituents trading higher, with an overall increase of 3.0%. This contrasts with the previous Friday's performance, where small caps and decentralized finance (DeFi) tokens led the gains. Meanwhile, macroeconomic factors have remained stable, with Brent crude at $101.97 and gold slightly down by 0.65% to $4,350.
This article is for information only and is not investment advice.