Bitcoin’s Rally Has Taken Crypto Back Above $3 Trillion. Traders Are Adding More Risk.

Bitcoin's sharp rebound has pushed the cryptocurrency market back above $3 trillion for the first time since January, with the world's largest digital asset climbing to an eight-month high as institutional buying and a wave of short liquidations accompanied the broader rally.

The digital-asset market has added more than $740 billion in value since the U.S. Treasury announced last month that it would increase buybacks of long-dated bonds, according to CoinGecko data cited by Bloomberg. Bitcoin reached $87,381 during U.S. trading Monday after rising nearly 8%, before retreating to around $85,000 Tuesday.

Monday's move took Bitcoin to its highest level since January, although the cryptocurrency remained well below its October 2025 record above $126,000. The rally has also brought more leveraged trading into the market, with open interest in perpetual futures across cryptocurrencies climbing to nearly $160 billion, the highest since late October 2025, according to CoinGlass data.

Perpetual futures allow traders to take positions on cryptocurrency prices without a fixed expiration date, while open interest measures the number of outstanding contracts that have not been closed. More than $920 million in bearish positions were liquidated Monday as cryptocurrency prices rose, even as overall open interest continued to increase.