Bitcoin briefly climbed past the $85,000 threshold on Monday, reaching its highest valuation since late January 2026. The leading cryptocurrency extended its rapid recovery from last week’s lows near $75,000, advancing more than 5% in a single 24-hour period. This price action brings Bitcoin within 3% of turning positive on the year, though it remains roughly 32.5% below its record peak near $126,000 established in October 2025.
The surge was fueled by an intense short squeeze across major derivatives exchanges. Market data from CoinGlass confirms that over $750 million in leveraged crypto positions were liquidated over the past day, with short sellers accounting for $648.3 million of the total wiped-out positions. Bitcoin derivatives alone represented $360.7 million of these forced liquidations, headlined by a single $11.3 million short liquidation on Binance’s BTC/USDT trading pair.
Major altcoins tracked Bitcoin’s upward trajectory as liquidations cascaded across derivative venues. Ethereum advanced 5.8% to trade around $2,717, while Solana surged 7.2% to $115.75. XRP recorded the strongest performance among high-cap digital assets, climbing 7.8% to $1.49.
Softening Oil Prices and Geopolitical Factors Relief Risk Markets
The digital asset rally coincided with a broader risk-on sentiment across Asian and European equity markets, bolstered by developments in global energy markets and macroeconomics. Brent crude futures fell approximately 1.5% as Saudi Arabia prepared to restore roughly half of its East-West pipeline capacity following recent infrastructure disruptions. Lower energy prices helped mitigate immediate inflation concerns across European and American trading sessions.
Investor focus remains on central bank policy following the Federal Reserve’s 25-basis-point interest rate increase last week. Fixed-income markets currently price in a 56% probability of a follow-up rate hike in October, with the US two-year Treasury yield holding near 4.75%.
Market participants are also monitoring key geopolitical developments, including potential diplomatic talks surrounding the United Nations General Assembly in New York and an upcoming bilateral meeting between US President Donald Trump and Chinese President Xi Jinping. The combination of easing oil prices, stabilizing equity futures, and high short-side leverage provided the ideal conditions for Bitcoin’s swift breakout above $85,000.
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