Crypto Liquidations Hit $929M as Bitcoin Hit Eight-Month High Price

Bitcoin has surged above $86,000 for the first time in eight months, rising sharply from around $75,000 on September 15. The rally has triggered $929.14 million in liquidations, putting heavy pressure on leveraged traders. 

Meanwhile, on-chain data shows many smaller Bitcoin holders had already sold before the breakout, as the market now sets its sights on $90,000.

Bitcoin Rally Triggers Massive Liquidations

As Bitcoin jumped back above $80,000, traders betting on a further price drop were caught off guard. The move triggered a major short squeeze, with around $648 million in short positions liquidated across the crypto market.

These forced closures added more buying pressure and helped push Bitcoin above $86,000.

Over the past 24 hours, 131,814 traders were liquidated, taking total crypto liquidations to $929.14 million. The largest single liquidation was an $11.29 million BTCUSDT position on Binance.

Despite the heavy liquidations, Bitcoin’s open interest rose 11.59% to $61.16 billion, showing that traders are adding new positions as the rally continues.

Smaller Bitcoin Holders Sold Before Rally

Data from crypto analytics platform Santiment shows a major drop in smaller Bitcoin wallets during the July and August market sell-off.

According to Santiment, 62,335 wallets holding 0.1 to 1 BTC and 7,159 wallets holding 1 to 10 BTC disappeared during the market shakeout. The data suggests that many smaller holders gave up their positions as Bitcoin faced months of price pressure and rising market uncertainty.

The large drop in smaller wallets came before Bitcoin recovered above $80,000 and later pushed past $86,000. 

With less BTC held by short-term sellers, larger buyers could absorb the available supply more easily.

What Comes Next for Bitcoin?

Bitcoin’s price has now climbed above $86,000 for the first time since January, with the move showing how quickly sentiment can change after a period of heavy selling.

Meanwhile, Bitcoin’s next major resistance sits around $87,500, while a break above that level could bring the psychological $90,000 mark into focus.

However, the sharp rally has also increased the risk of a short-term pullback. If selling returns, the $82,200 level could act as an important support area.