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

Decrypt reported that Bitcoin hit $85,111 on Monday morning, a 5.7% gain for the day. CoinGlass data indicated that short positions accounted for $648 million of the $770 million in crypto liquidations during the 24-hour period. Over $230 million in Bitcoin shorts were liquidated as the price recovered past $80,000.

Tim Sun, a senior researcher at HashKey, explained that the market had already reduced risk ahead of the Federal Reserve decision. “This fully anticipated rate hike eliminated a degree of uncertainty,” Sun said. He characterized the movement as a “sell the rumor, buy the news” pattern.

The rally followed a week where the asset withstood a Federal Reserve rate hike, a Bank of Japan increase to a 31-year peak, and the Senate’s vote against the Clarity Act, while staying above $75,000. Iliya Kalchev, a Nexo analyst, noted that the price had also broken through a resistance level tested for a week.

SoSoValue data showed Spot Bitcoin ETFs finishing the week $6.2 million in the black, after seeing a $462.7 million outflow the prior week. The 10-year Treasury yield dropped toward 4.93% after reaching 5.014% on September 14.

James Butterfill, head of research at CoinShares, pointed out that the Fed’s dot plot removed anticipated easing through 2027. He stated that an additional hike this year “now looks increasingly plausible.”