Bitcoin briefly tops $85,000 for first time since January as short liquidations surge

Bitcoin rebounds above $85,000 after weeks of decline

Bitcoin briefly climbed above $85,000 on Monday, its highest level since January, extending its recovery from a recent selloff. The cryptocurrency had traded near $75,000 on September 15 before recovering above $80,000 on Friday. Over the past 24 hours, it gained more than 5%, putting it down less than 3% year-to-date, though still roughly 32.5% below its October all-time high near $126,000.

The rally coincided with gains in Asian and European equities, as well as a decline in oil prices.

Key numbers

• Bitcoin rose above $85,000, its highest since January
• More than 5% gain over 24 hours
• CoinGlass recorded at least $750 million in crypto liquidations over 24 hours
• $648.3 million of those liquidations were short positions
• Bitcoin positions accounted for $360.7 million in liquidations
• The largest single liquidation order on Binance's BTCUSDT market was valued at $11.3 million
• Ethereum rose about 5.6% to $2,717
• XRP gained 7.8% to $1.49
• Solana climbed 7.2% to $115.75

What the market data shows

According to CoinGlass, the majority of crypto position liquidations over the past day were short positions — trades betting that prices would fall. When prices rise sharply, these short positions are forced to close, which can amplify upward price movements.

Ethereum, XRP, and Solana also posted significant gains, all rising more than 5% over the same period.

Oil falls, but rate concerns remain

Brent crude was down around 1.5% on Monday, with Saudi Arabia expecting to restore about half of its damaged East-West pipeline capacity within days. Lower oil prices helped support investor appetite for riskier assets like cryptocurrencies.

However, concerns about interest rates persist. The Federal Reserve raised rates by 25 basis points last week, and markets currently put the odds of another rate increase in October at roughly 56%. The U.S. two-year Treasury yield is around 4.75%.

Analysts also flagged upcoming diplomatic events as potential market catalysts, including a White House meeting between President Trump and Chinese President Xi Jinping on Thursday, and renewed hopes for diplomacy around the UN General Assembly, with Trump indicating willingness to meet Iranian President Masoud Pezeshkian.

What is confirmed

Bitcoin temporarily exceeded $85,000 on Monday, marking its highest level since January. Short position liquidations totaled at least $648.3 million, according to CoinGlass data. Other major cryptocurrencies also posted gains of 5-8%. Brent crude declined about 1.5%.

What is still unclear

Whether Bitcoin can sustain its position above $85,000 remains uncertain. The odds of a further rate hike in October are based on market pricing, not a confirmed central bank decision. The impact of upcoming diplomatic meetings on crypto markets is speculative.

Why it matters

The large-scale liquidation of short positions suggests that many traders were betting against Bitcoin during its recent decline. The forced closing of these positions can create rapid price swings in both directions, highlighting the volatile nature of crypto markets. For investors, the rebound above $85,000 represents a meaningful recovery from the mid-September lows, though the asset remains well below its recent peak.

Sources

• The Block

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