Bitcoin price surged toward $85,000 as more than $300 million in crypto short positions were liquidated in one hour, accelerating the market recovery.
BTC$84,665.00+5.40%Bitcoin price surged toward $84,500 on Monday as a sharp short squeeze accelerated the crypto market's recovery.
BTC climbed from around $82,000 at the start of the European session to about $84,700. The move came alongside gains across major cryptocurrencies and equity futures.
The latest rally also comes as traders prepare for the upcoming Trump - Xi summit on September 24, while falling oil prices have eased some pressure on global risk assets. Reuters reported that Brent crude fell for a fourth consecutive session on Monday.
The biggest catalyst behind the move has been forced buying from short positions.
More than $300 million of the roughly $313 million in crypto positions liquidated in one hour were shorts, representing about 96% of the total, according to CoinGlass data.
Bitcoin accounted for roughly $226 million of that hourly liquidation figure, while Ether contributed nearly $59 million.
Over the previous 24 hours, total crypto liquidations had exceeded $710 million, affecting almost 135,000 traders. The largest individual liquidation was an approximately $11 million Bitcoin position on Binance.
Short liquidations can accelerate a rally because exchanges automatically close losing positions by buying back the underlying asset. Those purchases can push prices higher and trigger additional liquidations.
The current move therefore has a strong leverage-driven component.
The latest rally marks a significant recovery from the selling pressure seen earlier this month.
Bitcoin had fallen below $80,000 after a stronger-than-expected U.S. jobs report increased expectations for Federal Reserve tightening. It later faced another sharp sell-off after the Senate failed to advance the CLARITY Act, with hundreds of millions of dollars in leveraged long positions liquidated.
Bitcoin ETFs also recorded $450.4 million in outflows on September 15, their largest daily withdrawal since June, as the regulatory setback weighed on sentiment.
That makes the move toward $85,000 notable because it has reversed much of the weakness that followed those events.
Macro conditions have also improved for risk assets.
Brent crude has declined for four consecutive sessions as markets monitor efforts to ease Middle East supply disruptions. Lower energy prices can reduce near-term inflation pressure, which is relevant for expectations around monetary policy.
At the same time, traders are positioning ahead of the September 24 meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Washington.
Reuters reports that trade relations, technology restrictions, critical minerals and other economic issues are expected to feature in the discussions.
Crypto is moving alongside broader risk assets. S&P 500 futures were up more than 0.5%, while Nasdaq 100 futures gained nearly 1% during Monday's session.
Bitcoin's recovery has also lifted crypto-linked equities.
Strategy (MSTR) and Strive Asset Management (ASST) were each up about 7%, while MARA Holdings gained roughly 6%. Coinbase and Bullish rose around 5%, and Robinhood advanced about 4%.
Among major cryptocurrencies, Monero's XMR was the standout, gaining about 13% to nearly $588 before giving back part of the move. DOGE gained around 5%, while XRP rose about 4% to above $1.45. Ether, Solana and HYPE added roughly 3%.
This broad participation suggests the move is extending beyond Bitcoin, although the exceptionally high share of short liquidations shows that derivatives positioning remains an important part of the rally.
The next question is whether Bitcoin can maintain the move after the short squeeze.
The previous rally toward $80,000 in August also triggered more than $220 million in short liquidations, showing that forced buying has repeatedly played a role in Bitcoin's recent advances.
However, the current squeeze is substantially larger on an hourly basis.
For Bitcoin to extend the recovery, traders will be watching whether spot demand continues after the forced short covering fades. The upcoming Trump-Xi summit, oil prices and broader expectations for Federal Reserve policy could also influence risk appetite.
For now, Bitcoin's move toward $85,000 is being supported by a powerful short squeeze, improving broader risk sentiment and renewed strength across major crypto assets.
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