Bitcoin surged above the $85,000 mark on Monday, September 21, to an eight-month high, extending its sharp recovery from last week’s lows.
The world’s largest cryptocurrency climbed as much as 5.1% to $85,257 in early trading, according to CoinMarketCap data, before retracing slightly to around $84,500. It is the first time Bitcoin has traded above $85,000 since January 2026.
The rally was driven by a massive short squeeze and renewed institutional demand. Data from Coinglass showed over $746 million in positions liquidated in 24 hours, with $647.9 million of those being short positions. Bitcoin shorts alone accounted for $277.5 million. More than $300 million in shorts were liquidated in one hour, forcing traders to buy back Bitcoin as the price rose.
The move aligns with stronger ETF inflows. US spot Bitcoin ETFs recorded $433 million in inflows on Friday, September 19, led by Fidelity and BlackRock, and nearly $593 million across Thursday and Friday, reversing earlier outflows.
Analysts said the market shrugged off two potential hurdles last week – the failure of the CLARITY Act in the US Senate and the Federal Reserve’s first rate hike in three years, a 25 basis points increase to 3.75% to 4%. The recovery was also supported by falling oil prices, easing Treasury yields and optimism ahead of a planned summit between US President Donald Trump and Chinese President Xi Jinping.
The broader crypto market moved with it. The global crypto market cap rose 5.1% to $2.88 trillion. Ethereum gained 5.8% to $2,721, while altcoins like SUI and NEAR gained more than 20%.
Bitcoin is now up more than 30% since August 19 and is holding above the $80,000 level that had proved a stubborn resistance in recent weeks.
