Bitcoin Nears $86,000, Lifting the Broader Crypto Market

Bitcoin climbed to nearly $86,000, pushing other major digital assets higher, CoinDesk reported. The upswing has been driven by sustained inflows into U.S. spot Bitcoin ETFs, a sharp wave of short covering, and expanding positioning in derivatives markets. U.S. spot Bitcoin ETFs have recently pulled in close to $1 billion, adding fresh demand in the spot market and helping support prices at elevated levels. As Bitcoin advanced, leading altcoins also strengthened, improving overall risk sentiment across crypto. Rising prices also triggered widespread short liquidations. Data shows short liquidations totaled about $920 million, with forced buybacks adding to demand and accelerating the move. Such dynamics often signal that gains are being reinforced not only by new inflows, but also by the unwinding of leveraged bearish bets. In derivatives, open interest in crypto perpetual contracts has risen to roughly $160 billion, pointing to heavier trading activity and greater leverage. Higher open interest typically suggests growing speculation around future price volatility. During the rally, total crypto market capitalization briefly moved above $3 trillion for the first time since January, before easing back to around $2.95 trillion. Bitcoin's ability to hold these levels may hinge on whether spot ETF inflows remain steady and whether spot-market buying continues to follow through.