Bitcoin hits $85,000 as short squeeze forces out $648 million of bearish bets
Bitcoin reached $85,000 as a massive short squeeze liquidated over $647 million in bearish bets. Market data suggests traders are aggressively replacing liquidated positions, keeping open interest high.
Why it matters
Significant liquidations and price surges in crypto markets indicate high volatility and speculative intensity, which can impact broader digital asset market stability.
The move is being driven by forced buying more than fresh conviction, with $746 million of positions liquidated over 24 hours, of which $647.9 million were shorts, and a further $159.9 million in the past hour alone, 95% of that on the short side. Bitcoin shorts accounted for $277.5 million of the 24-hour total and ether shorts $122.8 million, on Coinglass figures.
Open interest across the market has risen 7.59% to $156 billion even as those shorts were closed out, and 24-hour volume is up 39% at $224 billion, a combination that suggests traders are replacing the positions being liquidated rather than stepping back.
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