Bitcoin Nears $85,000: New Risks Build as $648 Million in Shorts Are Wiped Out!
As Bitcoin nears $85,000, approximately $648 million in short positions were liquidated across the crypto market. Despite this, the increase in open interest shows that the leverage risk in the market has not disappeared.
According to data from CoinDesk’s report dated September 21, Bitcoin rose 5.4% in the last 24 hours, reaching $84,984. This surpassed the $82,284 level seen on September 4. CoinDesk assesses that the movement was accelerated more by forced purchases as the positions of investors expecting a decline were closed, rather than a new appetite for buying.
Liquidations accelerating the rise hit those expecting a drop
According to CoinGlass data cited in the report, approximately $746 million worth of positions were liquidated across the market in the last 24 hours. About $648 million of this consisted of shorts—trades aimed at profiting from a price drop. Liquidations in Bitcoin shorts totaled approximately $278 million, while Ethereum short liquidations reached $123 million.
When short positions are forced to close as prices rise, it can create buying pressure. This pressure fueling the rally is known as a short squeeze. The $648 million figure refers to short liquidations across the general crypto market, not just Bitcoin.
Leverage appetite has not faded despite liquidations
Total open interest value across the market rose by approximately 7.6% to $156 billion, while 24-hour trading volume increased by 39% to $224 billion. CoinDesk interprets this as a sign that investors are continuing to take new positions rather than stepping aside after liquidated trades. The rise in dollar-denominated open interest does not signify an equivalent amount of new cash inflow on its own.
The size of open interest in Bitcoin futures also exceeded 700,000 BTC for the first time in weeks. Approximately 53% of the trading volume executed through market orders in crypto futures was on the buy side. This ratio does not mean that 53% of investors are in long positions.
Concentration toward the upside in one altcoin draws attention
One of the assets where leverage accumulation became evident was CRO. The amount of open interest in CRO futures reached a record level of 536 million tokens, while the annualized funding rate rose to approximately 60%. This does not represent a 60% daily cost or guaranteed return; it is the expression of the current funding rate on an annual basis.
According to CoinDesk, high funding indicates a concentration of long positions expecting a rally. If the price turns in the opposite direction, there is a risk of selling accelerating due to the forced closure of long positions. This assessment does not mean a decline is certain.
The rally was not limited to Bitcoin. In the 24-hour performance cited by the source, Sui gained approximately 21%, Dogecoin 10%, and Avalanche 14%. Interest in bullish call options continued for Bitcoin and Ethereum options.