Bitcoin Tops $85,000 as $648 Million in Shorts Are Liquidated in 24 Hours

Bitcoin surged to $85,111 on Monday, gaining about 5.7% in 24 hours, according to CoinMarketCap. After spending a week probing resistance, the move through a key level sparked broad short covering across the crypto market. CoinGlass data show roughly $770 million in positions were liquidated over the past day, with about $648 million tied to short bets. Bitcoin shorts alone accounted for more than $230 million during the same window. The rally comes as several macro headwinds have started to ease. Markets had recently digested the Federal Reserve's rate hikes, the Bank of Japan pushing rates to their highest level in 31 years, and the U.S. Senate's rejection of the Clarity Act. Even amid this dense set of catalysts, Bitcoin largely held above $75,000. Oil and rates also offered some relief. Reports pointing to stronger-than-expected Middle Eastern crude exports helped send Brent crude to a half-month low. In rates, the U.S. 10-year Treasury yield briefly touched 5.014% on September 14 before sliding back to around 4.93%, while the 2-year yield fell to 4.67%. Analysts say lower yields have reopened room for a rebound in risk assets. Traders also point to positioning as a key driver. Many believe earlier risk-off trades were largely completed ahead of the Fed decision and related policy votes. After the announcement, sentiment shifted into a "buy the rumor, sell the fact" pattern. As Bitcoin reclaimed $80,000, shorts began closing in a more systematic way. Decrypt, citing analysts, reported that spot buying later pushed through resistance near $82,000, triggering stop-loss buy orders and lifting the price above $84,000. The report added that Bitcoin has also retaken its 50-week moving average. ETF flows improved late in the week. SoSoValue data show Bitcoin spot ETFs saw combined outflows of $746 million in the first half of last week, followed by combined inflows of $592 million on Thursday and Friday. That left a net weekly inflow of about $6.2 million, the smallest weekly net inflow since launch, after the prior week's $462.7 million net outflow. On-chain behavior has turned more constructive as well. Wallets that sold consistently through August became net buyers by month-end, and by September 20 their daily accumulation rate hit a multi-week high. Spot activity also flipped from net selling to net buying on the day Bitcoin broke above $80,000. Attention now shifts to U.S. inflation and labor data. Glassnode metrics indicate selling pressure rose notably in early September but fell back to historically low levels by September 20. Markets are expected to focus on U.S. PCE, employment, and CPI releases, with analysts saying the trajectory of inflation and the stability of the labor market are likely to play a bigger role in shaping Bitcoin's next move.