Bitcoin reaches $85,000 for the first time since January amid $750M in crypto short liquidations over 24 hours.
Macro & Markets ·
Bitcoin climbed to $85,111 early Monday, gaining 5.7% over the preceding 24 hours and breaking through a resistance level it had tested for a week. The move liquidated $648 million in short positions across the crypto market during that period, with short sellers accounting for the bulk of forced buybacks. According to analysis, the initial squeeze triggered by these liquidations near $80,000 cascaded into further stop-loss selling around $82,000 and $84,000, ultimately propelling the asset higher.
Macro conditions shifted favorably for risk assets. The Federal Reserve's rate decision eliminated uncertainty that had dominated markets, and external geopolitical tensions eased as Middle Eastern crude exports performed better than expected and officials from the U.S. and China met to prepare for a September 24 summit. The 10-year Treasury yield retreated from a recent peak above 5%, signaling investor confidence in the Fed's inflation-focused stance. Spot bitcoin buying replaced selling as the price recovered, with large holders returning to net purchases for the first time since August.
Yet momentum's sustainability remains unclear. Spot Bitcoin ETFs posted their smallest weekly net inflow since launch, ending the week just $6.2 million ahead after outflows the two days prior. A key technical indicator of selling pressure fell to near-record lows, suggesting limited supply, but the Fed's removal of projected easing from its 2027 outlook could support dollar strength and complicate further gains.