Bitcoin Reclaims $85K as Short Squeeze Triggers $750M in Liquidations
What happened: Bitcoin surged above $85,000 for the first time since January 2026, marking a 6% gain in 24 hours.
What happened: Bitcoin surged above $85,000 for the first time since January 2026, marking a 6% gain in 24 hours. The rally triggered over $750 million in crypto liquidations, with $648 million coming from short positions. The largest single liquidation was an $11.3 million BTCUSDT position on Binance. Open interest in crypto derivatives rose 7.6% to $156 billion, indicating traders quickly re-entered the market despite forced closures. The move coincided with a four-day slide in Brent oil prices and followed the Federal Reserve’s September 16 rate hike.
Why it matters: The scale and speed of liquidations underscore the market’s vulnerability to crowded short positioning, with spot buyers sustaining the rally after the initial squeeze. Despite the sharp move, Bitcoin remains about 32% below its October 2025 all-time high of $126,000, framing the current surge as a recovery rather than a breakout. The rally’s resilience in a hawkish macro environment—following a Fed hike—suggests renewed risk appetite among crypto investors.