Following a brief pullback from an eight-month peak of $87,374, the price of bitcoin stabilized around $86,000, keeping its market cap at $1.73 trillion and the broader crypto market above $3 trillion.
Bitcoin Liquidations Drop Sharply as BTC Price Holds Above $86,000
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Key Takeaways
- Bitcoin held above $86,000 as total crypto market open interest surpassed $159 billion.
- CFTC draft rules sent to the White House revived market gains after Senate stalled the CLARITY Act.
- Rising leverage points to a potential bitcoin rally targeting $90,000, while the BTC/gold ratio hit 19.94.
Derivatives Cool Off After Volatile Session
Bitcoin’s rally briefly paused following its spike above $87,000 on Monday, settling into sideways consolidation while maintaining daily gains. Despite the minor retreat, total open interest surged past $159 billion across the crypto market alongside a sharp rebound in leverage, signaling strong underlying momentum for a potential breakout toward $90,000.
Market data shows that shortly after reaching a multi-month high of $87,374, bitcoin began a gradual decline, erasing most of its mid-morning gains. By 1:35 a.m. EST, its price had fallen to $85,098. A relief rally lifted it back above $86,000 roughly nine hours later, however.
The cryptocurrency’s approximately 1% rebound left its double-digit weekly gain intact while leaving its year-to-date losses just over 2%. Bitcoin’s market capitalization, on the other hand, remained unchanged at $1.73 trillion, which in turn helped maintain the broader crypto economy’s market cap above the $3 trillion mark.
In the derivatives market, bitcoin’s price action resulted in markedly lower short liquidations than 24 hours earlier. As shown by Coinglass data, more than $171 million in short bets were liquidated in the period compared to $454 million 24 hours earlier. Overall, total liquidations on bitcoin over the past 24 hours topped $168 million, a significant drop from the more than $500 million worth recorded on Monday.
Since Sept. 18, bitcoin has defied market expectations, surging from $77,000 to $80,000 just days after the U.S. Senate stalled the CLARITY Act market structure bill. While industry advocates initially viewed the legislative setback as a threat to the asset’s momentum, the narrative quickly shifted. Emerging reports that the Commodity Futures Trading Commission (CFTC) submitted proposed crypto market rules to the White House injected fresh optimism into the market, effectively reigniting the rally.
Not even escalating geopolitical tensions over the weekend could derail bitcoin’s upward momentum, as weekend buying pushed the cryptocurrency back above $81,000. This stark decoupling from broader macroeconomic anxiety reinforced the asset’s thesis as “digital gold,” a resilient store of value capable of shrugging off global instability.
Highlighting this trend, market researcher James Van Straten shared a chart of the bitcoin-to-gold ratio, which jumped 7.55% on the weekly timeframe to hit 19.94. The ratio’s sharp upward trajectory underscores how bitcoin is rapidly gaining ground relative to physical gold, bolstering its position as a preferred digital safe haven amidst global uncertainty.
