Bitcoin Tops $85K as $648M in Crypto Shorts Liquidated
Bitcoin surged to about $85,111, breaking above a resistance band after holding above $75,000 through a week of major macro and policy shocks. The move came as external pressure eased: oil prices softened, U.S.-Iran talks looked possible, and U.S.-China diplomacy improved. Bond yields also fell after briefly spiking above 5% on the 10-year Treasury, helping risk sentiment. The rally was driven largely by short covering and stop-loss cascades: roughly $648 million of $770 million in market liquidations were shorts, with Bitcoin shorts taking heavy losses as price reclaimed $80,000, then $82,000 and $84,000. Bitcoin also recovered its 50-week moving average. Spot demand improved as wallets turned net buyers and ETF flows flipped from outflows to a small net weekly inflow. Still, risks remain: the Fed’s dot plot implies tighter policy for longer, which could support the dollar and delay liquidity. Upcoming U.S. inflation and jobs data will likely determine whether the rally extends.
