Bitcoin hits $85,000 as short squeeze forces out $648 million of bearish bets

Bitcoin extended its break above the top of its September range on Monday, trading at $84,984 in the late European morning, a gain of 5.4% over 24 hours that leaves it well clear of the $82,284 high of Sept. 4.

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.